Public procurement and innovation - Kristian Puggaard (Damvad)
Innovative PublicProcurement and Health Care- Nordic Lighthouse ReportDanish Architecture Centre December 8 2011,by Kristian Mørk Puggaard www.damvad.com
DAMVAD in shortCopenhagen, Oslo MarketAcademic partners 40 employees Økonom 11% 32% Cand.merc Naturvidenskab 36% Statskundskab og 18% samfundsvidenskab 3% Sociologi og socialvidenskab
POINT OF DEPARTURE FOR THE NORDIC LIGHTHOUSE PROJECTPublic procurement of innovation in health care hasgained increased attention from policymakersProcurement of innovation is demandingLack of best practice examples
POINT OF DEPARTURE FOR THE NORDIC LIGHTHOUSE PROJECTDrivers for the market potentialsNordic health spending pr. capita USD PPP
TOWARDS A DEFINITION OF INNOVATIVE PROCUREMENT Defined need, solution, and functional Seen before and specifications standardised solutions Defined need and functional specifications, but the solution is unknown Defined need, but everything else is unknown Defined end goal, but everything else is New and unknown unknown solutions
DIFFERENCES IN THE NORDIC MARKET FOR PUBLIC PROCUREMENT Country Procuring organisations Market characteristic National Regional Local Denmark SKI 5 Regions 98 Centralised municipalities Finland Hansel Ltd. 20 Hospital 336 Highly districts municipalities fragmented Iceland State Trading 7 health Health Centralised Centre institutions institutions and Landspitali Norway Procurement 4 Regional 430 Fragmented services for Health municipalities Health Authorities Enterprises Sweden SKL 17 county 298 Highly councils and 4 municipalities fragmented regions
SELECTION OF CASESTrue best practice is identified beyond the discursive level Elements Methodology 1. Map the Desk research Discourse level procurement area in the Progress throughout the study Nordic countries 2. Identifying Engagement of Practice level best practice experts Telephone interviews Snowball survey LinkedIn groups Best practice level 3. Descibe and Interviews analyse the best practices Six cases
SIX CASES AS BEST PRACTICE IN THE NORDIC COUNTRIES Innovation Chain Dialogue Feasibility Project Tendering Evaluation Disseme- Study Design nationRegional level The Intelligent Hospital Bed Denmark PVC-free Blood Bags Sweden The Core Laboratory Iceland Meal Services for the Elderly SwedenLocal level Supportive Housing Services Finland Care + Norway Identification of needs Development of Tenders Implementation
MAIN FINDINGSLegal Framework Complicated, but is not preventing innovative procurement Legal counselling and support is importantProcess and Dialogue Useful and necessary when carrying out innovative procurement. Increases public sector market knowledge as well as the companies’ knowledge of user needsIncentives Demonstration and first sale gives commercial incentives to companies Public sector aims for better solutionsRisk Management Risks are inherent and inevitable in innovative procurement. No indication of formal risk management. Risks have been handled as they emerge.
HOW TO PROCEED? Identify Create Identify suppliers interaction needProcurement in public innovation Procurement in public innovationSource: DAMVAD for the Region of Northern Denmark 2011 Source: MEasuring Public Innovation 2011
ContactKristian Mørk Puggaardkmp@damvad.dkT + 45 40824861DAMVADBadstuestræde 20 Possibilities in knowledge1209 København KDenmark
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