09 June 2011 Affärskollegan - Your Business Partner 2
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1 Improving Health Care and Advancing Health Innovations with Public Procurement Sven-Eric Hargeskog Public Procurement & Innovation Expert Affärskollegan Your Business Partner
2 What is public procurement? 09 June 2011 Affärskollegan - Your Business Partner 2
3 A missing link in innovation Research push Innovation no man s land Needs pull 09 June Affärskollegan - Your Business Partner
4 The purpose(s) of public procurement 09 June Affärskollegan - Your Business Partner
5 Societal and political goals Innovation promoting Environmental aspects Social considerations Ethics Equality Child labour Animal protection SME s Standardisation Usability Architecture, design and shape Phasing out of products Electronic public procurement KPI CSR LCC/TCO Quality assurance. A better society More attractive public surroundings Patient perspective medical and health service Citizen driven public service Systemic thinking is required Resources are required 09 June Affärskollegan - Your Business Partner
6 The public procurement officer 09 June 2011 Affärskollegan - Your Business Partner 6
7 and innovation is just one June 2011 Affärskollegan - Your Business Partner 7
8 What is innovation? 09 June 2011 Affärskollegan - Your Business Partner 8
9 Instead of choosing between a and b do something different!... or differently! Roger Martin Fixing the game (BBC World) 09 June 2011 Affärskollegan - Your Business Partner 9
10 Innovation is also Something that creates new value, fulfils real needs, and is commercially successful Innovation isn t what innovators do, it s what buyers buy... (Michael Schrage) 09 June 2011 Affärskollegan - Your Business Partner 10
11 Approach Demand to outcome*/needs driven Underlying needs Difficult for users to articulate real needs PDS Problem Detection Study Define real needs! Reference: *What customers want; Anthony W. Ulwick 09 June 2011 Affärskollegan - Your Business Partner 11
12 Needs driven innovation Not demand driven! Who's needs? Market definition of needs which market? Dialogue is imperative market intelligence Connect real needs (problem solving) with opportunities/possibilities PPP? Developers and users Create incentives 09 June Affärskollegan - Your Business Partner
13 Ex. accessibility What is the problem? For whom? In which situations? What is important? Which is the underlying need? What is it they want to do? What is the goal/aim for the user? Are there any side objectives? (synergies) What do the users want to avoid? 09 June 2011 Affärskollegan - Your Business Partner 13
14 Ex. the chain saw massage Few start pulls Cut along the line Visible cut line Low pressure on saw area Avoid chapped edges Avoid cord cutting Avoid derailment at the end Avoid cord getting stuck Avoid chain getting stuck Increase life of chain/blade Minimise sawdust and waste (Bosch) 09 June 2011 Affärskollegan - Your Business Partner 14
15 Ex. adapted living P in stairwells fire security Thefts Dirty wheels Difficult to carry Occupies space in the apartment What to do? 09 June 2011 Affärskollegan - Your Business Partner 15
16 Public procurement Should by definition be needs driven! Development of public sector and services However, only a part of the needs the societal but may act as a catalyst and pioneer legitimacy for private sector Decentralised and without sector coordination, e.g. central government, local authorities, county councils/regions Possible to create critical mass size matters Aught to be able to take risks but, it s tax money!!! When visible in media? 09 June 2011 Affärskollegan - Your Business Partner 16
17 PPI strategy Opportunity for innovation? Q Yes No Procurement of innovations, incl R&D Innovation promoting procurement Conventional procurement 09 June Affärskollegan - Your Business Partner
18 Public procurement of innovations process flow 1. Needs analysis 2. Market investigation and analysis 3. Can the need be achieved without public intervention required? Yes = innovative public procurement No = public procurement of innovations 09 June Affärskollegan - Your Business Partner
19 Setting the demands 09 June 2011 Affärskollegan - Your Business Partner 19
20 Demand levels Effect definition Performance Function Detailed specifications But also increased risk! 09 June Affärskollegan - Your Business Partner
21 Parameters Intelligent procurement construction Incentives Commitment Trust User engagement and preparations Market and research sounding An open mind 09 June 2011 Affärskollegan - Your Business Partner 21
22 Effects of PPI PPI may contribute to three desired effects a more efficient public sector, providing better service to citizens and business actors increased growth, employment, and export opportunities for business entrepreneurs a better society However 09 June Affärskollegan - Your Business Partner
23 they represent more than three different policy areas! Notwithstanding that 09 June Affärskollegan - Your Business Partner
24 It is of vital importance To bring these goals together! 09 June Affärskollegan - Your Business Partner
25 Conflict of interest EU Policies (E.g. Public Procurement, Environment, etc.) National Policies [in practice] (E.g. Innovation Policy) 09 June Affärskollegan - Your Business Partner
26 One complete system Need Market Research Needs driven Defined for users underlying needs (PDS) Market intelligence Anticipated user need compromised Curiosity driven Uncertain commercial success 09 June Affärskollegan - Your Business Partner
27 UK experience NIC Focus by means of a health sector innovation agent NIC (National Innovation Centre) A small team - only 5 permanent staff ( triggers/agents ) Innovation infrastructure" with online tools (Scorecard et al) Develop Innovations for Unmet Needs 09 June 2011 Affärskollegan - Your Business Partner 27
28 Principles of the new UK Government Government role as Market Maker Enabling New Markets Stimulate Economic Growth Minimal State Intervention Only get involved when market is sub-optimal Openness & Transparency Making public data public Fairness Open Competition International Engagement Collaboration (e.g. VINNOVA, USA, India, China) (courtesy of NIC)
29 DH Innovation Procurement Plan Needs DH: Can be fulfilled via innovation procurement NIC: Cannot be fulfilled via innovation procurement: requires Rapid Pre-commercial Procurement Process (courtesy of NIC)
30 NIC Pre-commercial Procurement Model Define Design Develop Demonstrate Distribute WIBGI..? Investment Committee Project Management Performance Tool NHS Supply Chain Statement of Clinical Need Competition Zone Project Zone Open Innovation Web-based component Manual component (courtesy of NIC)
31 09 June 2011 Affärskollegan - Your Business Partner 31
32 ? 09 June 2011 Affärskollegan - Your Business Partner 32
33 Pre-Commercial Procurement To create a market mature enough for public procurement an alternative to calls in innovation systems or innovative public procurement
34 PCP=SBIR? 09 June 2011 Affärskollegan - Your Business Partner 34
35 SBIR = Small Business PCP = all business 09 June 2011 Affärskollegan - Your Business Partner 35
36 Leveraging procurement power Phase 0 Research Phase 1 Solution proposal Phase 2 Prototype Phase 3 Pre-commercial product/service Phase 4 Commercial product/service Pre-commercial Procurement Innovative Procurement Procurement of R&D Services - Exception to procurement rules Procurement rules 09 June Affärskollegan - Your Business Partner
37 Proposed framework DG INFSO Pre-commercial Procurement Innovative Procurement Phase 0 Research Phase 1 Solution proposal Supplier A Phase 2 Prototype Phase 3 Pre-commercial product/service Phase 4 Commercial product/service Supplier B Supplier C Supplier D Supplier E Tendering (GPA not applicable) Supplier C Supplier D Supplier E Supplier C Supplier E Supplier A,B,C,D,E or X Tendering (GPA applicable) 09 June Affärskollegan - Your Business Partner
38 09 June 2011 Affärskollegan - Your Business Partner 38
39 Pre-commercial procurement Public service contract for procurement of R&D services (acquisition of knowledge) Directive 2004/18/EC, Article 16, Special exclusions: This Directive shall not apply to public service contracts for: (f)research and development services other than those where the benefits accrue exclusively to the contracting authority for its use in the conduct of its own affairs, on condition that the service provided is wholly remunerated by the contracting authority. 09 June Affärskollegan - Your Business Partner
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