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Public procurement and innovation - Suzan Ikävalko (Culminatum Innovation)


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Public procurement and innovation within the health sector - Nordic workshop
8. December 2012, Danish Architecture Centre, Copenhagen

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Public procurement and innovation - Suzan Ikävalko (Culminatum Innovation)

  1. 1. Suzan Ikävalko Culminatum InnovationPre-commercial procurement in eHealth: 1. EU PCP Preco -project 2. Finnish PCP landscape
  2. 2. The missing link in the EU innovation cycle?- in order to deliver, change management must engage all involved actors Technology and Innovation – Market research push no man’s land? pull(Public) demand and user driven open innovation(procurers, suppliers and users) to ensure integratedeHealth services and market entry.
  3. 3. WHY PCP?Studies show that demand driven publicprocurement has a greater impact oninnovations than traditional public aid in R&Dactivities.Conclusion : A clear shift towards financingdemand driven innovation (life cycles) is needed– connect also to private investment (venturecapital)
  4. 4. PreCo actions:Benchmark: Collecting and analysing best practicesFacilitate discussion between procurers and suppliers.Establish a thematic network of experts on PCP.Identify domain specific guidelines, policy recommendationsand PCP strategies. Delivered to the Commission by the endof 2011.Joint events and public PreCo
  5. 5. WHERE ARE WE NOW in EU?Both the EU Commission and national/regional actors havebecome active – interesting developments taking place inseveral EU countries at the moment !PCP projects are still rare in Europe – most concrete modelsand results so far with the UK and Dutch SBIR models (nationalcatalytic proc.) and the UK NHS/NIC model.Use of Demand and User Driven Innovation practices inconnexion to PCP type models e.g in Denmark.
  6. 6. How to speed positive development?“Identified skills and knowledge gap seems tobe the most significant factor that impedesprogress”“More widespread skills and knowledge intaking and delivering eHealth (PCP )investment decisions is more important thanmore finance”
  7. 7. Required :• High level policy support for PCP / ”Green light” and new incentives (financial instruments & others)• Training and consultation services for the public sector actors involved in the strategic procurement planning.• Cost/benefit and impact analysis to show evidence
  8. 8. PCP not just a tool for innovation procurementCan also be used as a tool for remodelling public services and anchoring innovations into reality.Should be seen as an interactive collaborative learning process; buyers , vendors and end-users.Potential for Innovation on product/solution level – and on service level - > complete carepaths !
  9. 9. PCP PRACTICES CAN DELIVER WIN-WIN-WIN RESULTS:Support and boost sustainable and innovative investmentin R&D&I in the domain of eHealthCreate public demand and user-driven eHealth innovationsCreate opportunities for European companies & economiesEnsure market deployment and wider commercialization
  10. 10. The Finnish PCP landscape• The framework has been identified by the Ministry of Economy & Employment• Tekes (technology funding agency): financial instrument supporting PPI and PCP in place• First national and EU cross-border PCP pilots startingBUT – in reality PCP is not a familiar instrument to most public authorities in the healthcare sector.
  11. 11. Pre-conditions for PCP eHealth in Finland• strong awareness raising & training activities• jointly agreed strategic approaches for eHealth uptake• pooling of demand and actions (and sharing) while demand-side structures extremly fragmented• a national competence center on PCP (and eHealth) or other type of holistic support organization such as the Norwegian difi or Dutch Nictiz?
  12. 12. HEALTHY HELSINKI - eHEALTH LIVING LAB EXPERIENCEOpportunities:• Innovation potential, All key players involved• Increased demand for innovations due to aging society and lack of personnel• Potential to increase understanding of demand and supply and operational environment• Potential for large cuts in costs with innovationsChallenges• Co-operation difficult, Different cultures, and perspective in time• Need to change the mindset in public sector –• Technical challenges: no interfacing to the existing systems, closed city network -Reluctancy to changes
  13. 13. The Mobile Health PPI Project of the Healthy Helsinki• Analysis suggest that a case adopted PCP process could have been an answer to the challenges identified in the Mobile Health project.• The recommendations have identified a need for a systematic tool for the R&D&I process with focus on the different phases and aspects of the process in line with a PCP process.
  14. 14. The tool should address:• a thorough early needs assessment including all key parties (companies, end-users & others)• clear contractual and legal procedures, including the IPRs and transparency• formal commitments and roles of the parties involved in the process• focus also on the commercialization phase, i.e. in securing deployment (through commercial procurement ) of the new solution/service as a final step in the Innovation chain
  16. 16. Create coherent and transparent European models for pre-commercial procurementTowards European pilots for Innovation Procurement :Pilot PCP projects needed to show evidence Commission ICT work programme supports these actions, e.g. ICT call 8 / PCP:One targetetd call and one open call addressing ICT solutions in any area of public interest such as Health, and Aging
  17. 17. Health and Aging: Societal challenge nr 1- ICT based solution needed in these sectors- High Business interest – even Venture capital- Potential for Innovation on product/solution level – and on service level (complete carepaths) -> PCP is also a tool for remodelling services and anchoring innovations into reality.
  18. 18. Fields where innovative ICT based solution areneeded and where empowering the patients in their care is vital:- Aging / Home care- New Diseases / societal diseases such as Diabetes- Preventive (even mental) care / Active & Healthy living – not only aging!- Pre / post operation care outside the hospital environment- Services for mobile EU citizens
  19. 19. Questions to be addresses:• How to bring about a cultural change so that the understanding and will come from inside?• How to conduct co-creation?• What is the importance of financial support?• Capacity building within all authorities or centralized support such as NHS/NIC ?• We are trying to create a Euren market -> common, feasible topics?
  20. 20. Needed for ICT call (min. 3 procurers, diff. M.S.) :- Facilitators, PCP experts, other professionals able to pull the proposal together and contribute to a succesfull outcome – aiming at commercial procurement and solutions deployable even in wider markets- Wide understanding of the thematic market- Knowledge of ongoing and supporting (project-) work relevant to the proposal theme
  21. 21. Add on existing workWe are trying to create common European market ->Take into account existing work facilitating this ! :• A number of PCP / Innovative procurement projects: PreCo, LCB Healthcare, etc• Work on interoperability/standards• Thematic projects e.g. in the area of eHealth: epSOS, Calliope, LOD2, Smart Personal Health, Preve etc• eHealth Strategies study (Jan 2011) : evidence on progress in Member States and recomendations for cooperative action
  22. 22. Important issuesPCP pilots – in particular cross-border ones- should focus on issues where common nominators and interest existHow does the innovation to be developed fit into the complete service chain / path care –does it bring transformational changes implying remodelling of public servicesIs there a real demand- and user driven need leading to deployment of the procured innovations i.e. commercialization
  23. 23. ChallengesMany public authorities are completely unfamiliar with PCP - NL and UK are exception to this – need for selling!Make the interface of purely market driven and strictly publicly regulated health services to work smoothly togetherFind topics where also SMEs can really get involved - (collaboration with industry organizations)Ensure usability and deployment – involve end –users throughout the process (Desing led process) , possibly even Living Labs
  24. 24. Budapest PCP event Health and Aging well breakout session: Key issues in PCP implementation1. Connected Health -> neww innovative solution/service integrated into existing services, securing also deployment2. Common Needs assesment – use also CIP pilot call for this (to be announced 27.6.) ?
  25. 25. 3. Functional user requirements4. Demonstrate benefit / cost /impact analysis5. Common patient data platform, sharing (open) data: Making use of Epsos standards, addressing possibly several needs & solutions in the same project
  26. 26. 6. Make use of patient / citizens /clinician involvement (i.e. co-creation methods, inluding Living labs ) throughout the whole PCP process , PCP 0 phase important!7. Thematic PCP Best practice data bank + Guidencebook needed, illustrating concrete issues
  27. 27. 1. Do you have any experiences of PCP like development processes in the field of eHealth, including user driven co- generation and Living Labs?2. If yes – what have been the main lessons learnt and main benefits/gains?3. Can you define obstacles/key issues for using PCP type approaches as:a) preparatory R&D phase for commercial procurement in eHealth sector?b) Policy instrument for deployment of connected health solutions in EU member states?