Public PrivatePartnerships &Idea selectionA tool to select technological healthcareinnovation ideas
www.pwc.nl
‘PPPs should select technicalhealthcare innovation ideasby answering seven questions’
Contents
Executive summary 4
Section 1: Increasing healthcare expenditure drives the establishment of PPPs 5ó The increasing healthcare expenditure is not sustainable 5
ó
Section 2: PPPs face challenges in selecting promising healthcare innovations 6ó
ó
Section 3: A new tool to guide PPPs in assessing innovation ideas 8ó PPPs should select technical healthcare innovation ideas by answering seven questions 8
ó Is this idea in line with the PPP strategy? 9
ó
ó Does the PPP possess the appropriate resources to develop this idea into a product? 10
ó
ó
ó
ó
Section 4: What can PwC do for you 14
Contacts 15
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Executive summary
innovations can aid in containing this rising expenditure.
expensive, risky, and subject to regulatory barriers. As a
and selecting the innovation ideas with the highest
ideas.
The degree to
which the idea is
in line with the
overall strategy
scrutinising the
innovation idea.
The degree
to which the
in the overall
organisation.
The degree
to which the
PPP possess
the required
resources to
develop, launch
and service the
innovation.
Feasibility
to the creation
product, and
the bureaucratic
barriers
involved.
Market
analysis
product, product
advantage,
superiority,
Inclusive
development
external input
during the
process.
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Section 1: Increasing healthcareexpenditure drives the
The increasing healthcareexpenditure is not sustainable
OECD countries, we see clear increases in the percentage
total Dutch healthcare expenditure was 7%, and 11,4%
this rise in healthcare expenditure cannot be sustained in
the long run.
healthcare innovations. Innovations such as wearables
visits. More intricate innovations that can assist surgeons
technology.
Public Private Partnerships enable
innovations
Intensive collaboration between stakeholders is required
to reduce costs in developing technological healthcare
solutions. To this end, Public Private Partnerships (PPP)
between public and private sectors with a durable
shared.
to a broad knowledge and expertise base. Participants
participation can help to decrease regulatory barriers
and allowing PhD students to work closer to the
collaboration with renown and highly talented
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selecting promising healthcareinnovations
PPPs lack adequate tools to
innovation process
innovations, PPPs have to go through a product
the innovation.
to ensure that the innovation idea selected answers
be conducted between several partners in a horizontal
these tools can be used by PPPs.
technological healthcare innovationideas
a role in reducing healthcare expenditure. With this in
be used by PPPs.
and to others struggling with this knowledge gap in the
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2000
Korea
Turkey
Mexic
oEst
oniaPola
nd
Slovak
RepublicIr
eland
Czech
Republic
Luxembourg
Unite
dKin
gdom
Finla
ndH
ungary
Neth
erlands
Greece
Sweden
New
Zealand
Austra
liaN
orway
Belgiu
mD
enmark
Slovenia
CanadaPort
ugalIc
eland
Austria
Switz
erland
France
Germ
any
Unite
dSta
tes
2005 2010 2013
16%
14%
12%
10%
8%
6%
4%
2%
Italy
Japan
Isra
el
Spain
Chile
PPP increase
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Opportunity
Idea screening stage
Development Testing Launch
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Is this idea in
line with the
PPP strategy?
Is the right organisation structure in place to develop this idea into a product?
Innovation idea
Does this idea Does the PPP
possess the
appropriate
resources to
develop this
idea into a
product?
Feasibility
develop this
idea into a
product?
Market
analysis
How large is the
idea?
Inclusive
development
to include
stakeholders
during the
this idea?
Section 3: A new tool to guide PPPsin assessing innovation ideas
PPPs should select technicalhealthcare innovation ideas byanswering seven questions
PPPs should scrutinise innovation ideas and conduct their
sense, such as the organisation structure and the trust level
innovation idea. Ideas that show no or less potential can
entirely.
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on the value the idea adds to their own organisation. However, adding value to all partners can
the PPP collaboration and take these aspects into consideration when conducting the selection.
••
“We have to move away from autonomous business thinking” – Ex CEO of a top tearLife Science company (2014 revenue, 10bn)
radical innovations.
••
“Looking at the properties of individual projects is only half of the equation” –Professor of Innovations studies at a world leading graduate business school
Is this idea in line with the PPP strategy?
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innovation ideas with innovation leaders. An innovation leader is described as an individual close
Does the PPP possess the appropriate resources to develop thisidea into a product?
•••
“A great team with a low ambition is not interesting.” – Innovation manager at aDutch PPP
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select ideas where they can best leverage their individual strengths (e.g. relationships in the
Feasibility •••
•••
“You do not want to be the only one in the world to have an innovation… you look ifothers have complementary technology…” – Innovation manager at a top tier HealthTech company (2014 revenue 20bn)
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•
• can be individuals or entities that do not directly use the products but
.
• End-users
Market analysis •• Product advantage analysis
•
•• Market trend analysis
•
“The ease of use is key. In the end, the product itself will not be as important as thecomfort that it can provide the end-user.” – Professor of Product Development at aDutch University of Technology
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Is there room to include ‘unconventional’ stakeholders during
InclusiveDevelopment
••
“There must be a willingness to pay for the innovation from the market. This is inhealthcare dictated by the insurance companies. If the insurance companies see
because they will give the innovation time to prove itself.” – Innovation director at aworld leading pharmaceutical company (2014 revenue 70bn)
the PPP selecting the innovation idea.
Is the right organisation structure in place to develop this ideainto a product?
• Internal leadership buy in
••
•• Trust
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Section 4: What can PwC do for you
The innovation idea selection tool is part of our PwC Innovation & Development services. These services focus on aligning business objectives with a fit forpurpose innovation strategy, resulting in improved profit for (and growth of) your organisation. By adopting a multi-disciplinary and cross sector approach taking into account our expertise across Advisory, Tax and Assurance we:
• perform international technology market studies to support our clients (and society) in understanding thesocietal implications and effects of (break-through) innovations;
• assist in the development of robust multidisciplinary roadmaps for technology platforms or ecosystems in line with market developments and trends;
• assist in the obtainment of relevant federal, provincial and or municipal tax and cash incentives to support the innovation activities of our clients (nationally and internationally through our Global Incentive Network);
•
•
to our clients by focussing on both strategy and operations activities and the alignment thereof;
• between corporates, SMEs and start-ups to accelerate innovation.
14 Public Private Partnerships & Idea selection
Assist our clients in identifying and defining their role in relevant ecosystems and public and private partnerships with the aim to help them create synergiesand added value;
offer holistic and implementation-oriented support
• enable our clients to improve ther competitiveness through optimising of the performance & process of the innovation portfolio in complex organisationsin the short-term (higher R&D effectiveness, real open innovation in regional or international ecosystems) and a stronger and more innovative product / market position in the long term
enable and create strong and mutually beneficial links
Contacts
Chris Koehler
Consultant
Lina Lukoseviciute
Senior Associate
Senior Manager
Anton Koonstra
Partner
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www.pwc.nl.