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

1. Suzan Ikävalko
Culminatum Innovation
Pre-commercial procurement in eHealth:
1. EU PCP Preco -project
2. Finnish PCP landscape

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 integrated
eHealth services and market entry.

3. WHY PCP?
Studies show that demand driven public
procurement has a greater impact on
innovations than traditional public aid in R&D
activities.
Conclusion : A clear shift towards financing
demand driven innovation (life cycles) is needed
– connect also to private investment (venture
capital)

4. PreCo actions:
Benchmark: Collecting and analysing best practices
Facilitate discussion between procurers and suppliers.
Establish a thematic network of experts on PCP.
Identify domain specific guidelines, policy recommendations
and PCP strategies. Delivered to the Commission by the end
of 2011.
Joint events and public PreCo website
www.preco.share2solve.org

5. WHERE ARE WE NOW in EU?
Both the EU Commission and national/regional actors have
become active – interesting developments taking place in
several EU countries at the moment !
PCP projects are still rare in Europe – most concrete models
and results so far with the UK and Dutch SBIR models (national
catalytic proc.) and the UK NHS/NIC model.
Use of Demand and User Driven Innovation practices in
connexion to PCP type models e.g in Denmark.

6. How to speed positive development?
“Identified skills and knowledge gap seems to
be the most significant factor that impedes
progress”
“More widespread skills and knowledge in
taking and delivering eHealth (PCP )
investment decisions is more important than
more finance”

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. PCP not just a tool for innovation procurement
Can 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. PCP PRACTICES CAN DELIVER WIN-WIN-WIN RESULTS:
Support and boost sustainable and innovative investment
in R&D&I in the domain of eHealth
Create public demand and user-driven eHealth innovations
Create opportunities for European companies & economies
Ensure market deployment and wider commercialization

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
starting
BUT – in reality PCP is not a familiar instrument to
most public authorities in the healthcare sector.

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. HEALTHY HELSINKI - eHEALTH LIVING LAB EXPERIENCE
Opportunities:
• 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 innovations
Challenges
• 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. 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. 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

15. CHANGE OF MINDSET
NEEDED?
THANK YOU !
suzan.ikavalko@culminatum.fi
+358-50-5834292

16. Create coherent and transparent European models for
pre-commercial procurement
Towards 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. 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. Fields where innovative ICT based solution are
needed 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. 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. 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. Add on existing work
We 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. Important issues
PCP pilots – in particular cross-border ones- should focus on
issues where common nominators and interest exist
How does the innovation to be developed fit into the complete
service chain / path care –does it bring transformational
changes implying remodelling of public services
Is there a real demand- and user driven need leading to
deployment of the procured innovations i.e.
commercialization

23. Challenges
Many 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 together
Find 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. Budapest PCP event Health and Aging well
breakout session:
Key issues in PCP implementation
1. Connected Health -> neww innovative
solution/service integrated into existing
services, securing also deployment
2. Common Needs assesment – use also CIP
pilot call for this (to be announced 27.6.) ?

25. 3. Functional user requirements
4. Demonstrate benefit / cost /impact analysis
5. Common patient data platform, sharing
(open) data: Making use of Epsos standards,
addressing possibly several needs & solutions
in the same project

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. 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?