NEW CHALLENGES FOR HEALTH AND BUSINESS The importance of investing and correctly assess the health

sector to contribute to enrich the local economy

NL4 March 2015

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INVESTING IN HEALTH 3rd LEG: BUSINESS, CLUSTERS, SCIENCE PARKS, LABORATORIES...

INTRODUCTION

You have in your hands the third thematic

newsletter of the 4D Cities project. This document

analyses the business sector from the point of view

of Health Innovation and puts in relation with other

agents that interact in this field. The aim is to make

it an engine for the social and economic growth of

cities.

This time we have talked to the specialist in

measuring the impact of Social Return on

Investment (SROI), Peter Scholten, who has

accompanied us in the final stretch of the project

advising us to correctly assess the respective Local

Action Plans. The newsletter also presents the latest

reports and includes the agenda of the 4D Cities

Final Event that will take place in the Lead Partner

city of Igualada on March 31st and April 1st 2015.

INDEX

2 Introduction

3-4 A business with future

5 Actions and interactions

6 New documents

7-10 Interview

11 Gallery

12 Contact

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A BUSINESS WITH FUTURE

THE CITY AND THE COMPANIES HAVE TOOLS TO CREATE A USEFUL AND

PROFITABLE HEALTH INNOVATION ECOSYSTEM

The health-related private sector plays an important role in the development of

Health Innovation. This role can be specified in a series of actions that can be

implemented by two types of local actors namely local authorities and health

agents. Both of them must be aware of their role in jointly planning a fruitful and

encouraging roadmap.

On one hand, the local government should be

proactive with the business sector, interacting and

understanding companies needs and helping them

in making decisions. On the other hand, the

business sector should support development in the

Healthcare Innovation field offering trading

opportunities to other companies and creating a

solid platform of business.

Now we are going to specify the main actions that

should be undertaken to achieve the implementation

of this mutually beneficial interaction.

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ROLE OF THE LOCAL ADMINISTRATION IN

CREATING THE CONDITIONS TO PROMOTE

BUSINESS IMPLANTATION OF HEALTH

RELATED COMPANIES

1.- Customize the message to each company according to the profile of investment to attract.

2.- Meet the right person at the company and keep open and regular communication to monitor

and understand their requests.

3.- Offer an added value for the companies, the city government has to have an international

perspective and position. Participate in fairs,

international forums and seminars.

4.- Patents policies and intellectual property agreements with companies can favour

implantation. Mind differences between new and

existing companies: work on remuneration for the

clever things that companies have developed,

protect research results in an open research

context.

5.- Identify what companies look for: beyond tax incentives, the business sector looks for

knowledge, skilled workforce

6.- Promote a unique interlocutor for companies that coordinates all the procedures and paperwork

needed. Create the profile of a municipal technique

that provides business assessment and support to

the creation of companies, facilitating information

about the procedures and steps to be done, grants

available for companies, etc.

7.- Develop a promotional campaign to attract companies. Fund a commercial job to look for

foreign and inward investment.

8.- Create the post of a prospector at the municipal level to visit companies and collect their

profile and needs (professional profiles needed,

present and future training needs, etc.) and at the

same time present the services provided by the

municipality (job bank, business assessment, grants

for hiring unemployed people, etc).

PROMOTE BUSINESS STAKEHOLDERS

COLLABORATION AND ECOSYSTEM FOR THE

HEALTH INNOVATION ECONOMIC SECTOR

1.- Support companies, especially SMEs, by offering opportunities for networking, meeting and

interacting among entrepreneurs from the Health

sector and related industry (technology, software,..).

Help companies meeting the right partners for

business synergies through regular gatherings and

focused meetings.

2.- Facilitate access of SMEs to meaningful information from health-care providers and

knowledge institutes to understand and develop

meaningful products that fit in the Health system. In

the same way, facilitate contacts and cooperation

with consumers, users and patients to understand

the need for acceptance of the innovation by the

market and develop patient-friendly products and

technologies.

3.- Support services and training of SMEs in the development of new business models, products and

services and to support them in getting investor-

ready in the healthcare sector.

4.- Coach companies, especially SMEs to go through project implementation.

5.- Create conditions for cluster development with a wide range of stakeholders to interact and

complement.

6.- A business ecosystem may consist of a number of public and private sector stakeholders can be set

to stimulate economic activity related to the health

sector. They interact and complement to offer

services and products for the business

development:

Innovation labs

Local and Regional Business Development

Agencies

Local Government Department on Economic

Development

Business Advisory Centres

Business Associations

Business Incubators

Innovation and Research Companies

Scientific Parks, Biotechnology Parks, etc.

Chamber of Commerce

Social Enterprises

Clusters

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BUSINESS HELIX: ACTIONS AND INTERACTIONS

CITIZENS

-Inform of Corporate Health Management programs

for companies to reach healthier working conditions

and habits

-Inform about fiscal benefits or other advantages

(such as the improvement of the public image of the

company) for companies hiring disabled people

-Implement local family friendly policies to retain

skilled professionals and prevent University graduates

from leaving to other cities

-Offer local activities with an aim of making a healthier

city attractive and enlarge the population

-Experience new devices or technology in a real life

context

-Stimulate social enterprises in the Health sector

through legal or fiscal incentives

-Create a job bank, a job notice board and/or job fair

locally to facilitate companies the search for

professional profiles

-Support day/night care remote surveillance with new

technological systems and software that allows

monitoring people with health condition and

dependency

-Facilitate contacts and cooperation with consumers,

users and patients to understand the need for

acceptance of the innovation and develop patient-

friendly products and technologies

-Build relations with patients' associations, relatives,

careers, to facilitate interaction with e-health

companies and services

-Promote occupying disabled people in a

productive/commercial activity to alleviate social and

healthcare costs and increases wealth and wellbeing

of citizens

KNOWLEDGE

-Inform companies about curricula plans at local

level, number of students in different disciplines

and the existing labor force profile of the city

-Develop indicators to understand trends and

estimate future requirements of professionals in

the private health sector and industry

-Assess the availability of the actual trained

workers to meet Health Services needs

-Implement policy measures involving different

Municipal services to attract young people and

students to local universities and training centers

-Facilitate interaction between companies,

specially SMEs, and research institutions so they

can develop meaningful products

-Manage intellectual property through contracts

with companies to protect their good work within

an open source context

-Set local research agreements and incentives

-Design a local policy around patents and

intellectual property

-Foster the entrepreneurship from the University

and other training centres

-Enable vocational training agreements with the

business sector for students to be trained in

companies

-Invest in Health science parks

-Promote new training centers and appropriate

curricula in areas in which companies need work

force

-Provide the right professional retraining and

lifelong learning through the educational offer to

match the health sector needs in the city

HEALTH SYSTEM

-Facilitate understanding of health procurement regulations for a better interaction with providers and SMEs

-Create a signpost system to ease navigation through Health services and support for business

-Designate a key account manager to ease relations between companies and the municipality

-Enable the appropriate technology to establish single electronic patient record

-Regulate treatment of patients' data to develop useful ITC on the principle of patients being the owners of it

-Set data platform and protocols governing the information architecture (open standards, sources, interoperability)

-Involve end-users in the development of companies' health products, devices or software

-Remove obstacles to healthcare innovation to make collaboration with the private sector

-Recreate scenarios facilitating an interdisciplinary work and the test of new products and technology

-Help business creation with financial structures and services in support of start-ups

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NEW DOCUMENTS VIDEOS AND REPORTS OF PROJECTS DEVELOPMENT

Disseminated the 4 Output Thematic Reports

The Output Thematic Reports are some of the key documents of the project since they go in depth into the

areas identified as crucial in promoting Health Innovation as local growth for cities. All of them are available

on the library website and are the result of the transnational meetings held throughout 2013.

Focused on the four project dimensions of Business, the Citizens, the Health Sector and the Knowledge,

they collect results and examples shared among the eight members of the 4D Cities network. The information

is organized in a 360 perspective that places the patient at the center of the health system and proposes

policies for local government to be taken to promote the various proposed actions.

Specific reports on methodology to produce better Local Action Plans

The two reports which contain specific skills to produce better Local Action Plans

are already available on the website.

The second one, published at the end of last year, is entitled Communication &

Fundraising and includes the minutes of the meeting, the main conclusions,

lessons learned and feedback from the experts who participated in the meeting in

Tartu.

2 new videos Actors operating in Health Innovation

We have also launched two new videos from the series that explore the four

dimensions of the project. Therefore, concurrently to the newsletters

dissemination, they are focused on Knowledge, the Health System and the

Business world.

They include the interventions of the Project Lead, the Thematic Expert and the

Lead Expert who explain the fundamental aspects of the thematic issue and

analyses each cities set of interactions. At the same time, they pick up statements

of all members and pictures of meetings and working visits. You can watch them

on Youtube and Vimeo channels.

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PETER SCHOLTEN, CONSULTANT AND DEVELOPMENT ADVISOR. EXPERT IN PERFORMANCE MEASUREMENT AND MANAGEMENT AND SOCIAL ENTREPRENEURSHIP

WORKING ON PERFORMANCE MEASUREMENT, ASK YOURSELF WHAT YOUR OBJECTIVES ARE

Peter Scholten is an international expert on social performance measurement. Consultant and developer for organisations and enterprises with a financial, social/cultural and ecological bottom-line, Scholten has co-introduced the SROI-methodology in Europe and invented the 'ValueGame'. Here he answers some of the questions related to Health measurement and Health Innovation development in global terms and applied to the 4D Cities network.

We have detected that, in general, Health is only

seen as a spending stream, but we think that it

also can be a loophole that generates wealth. Do

you agree?

Sure! I think the main reason for this is that

nonprofits like healthcare get paid on the basis of

their costs and not on the basis of their value

created (like many for profits). Since nonprofits are

not meant to make profits, we tend to pay them on

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the basis of cost. And therefore treat them as

expense centers.

Do companies really realise that the Health

Sector is a valuable economic sector?

Yes, I think so. Everybody will agree that health is

an important part and driver of our economy. But it

is not only an economic issue. It is also about value

creation for people, which is often not seen as an

economic issue. Health care organizations can

improve their outcome statements by adding this

customer value to their reports.

What are the evidences that companies need to

invest in health?

Unhealthy people will create huge business and

societal costs. I do not think we have to prove that; it

is common knowledge. The problem is not in

investing itself, but in investing in regions, where the

costs of healthcare due to the limited scale and

small populations is not feasible in pure financial

terms.

Therefore, the example of Baia Sprie one of the

participating cities in your project is so great. It is

pretty simple and straightforward, but it proves that

people are willing to invest, not only on financial

impacts, but also on personal impacts. This is a very

great example of what people are willing to invest, in

order to have a hospital in their own city.

Is health assessable? How can we prove the

benefits of social investments?

Nowadays, there are quite a lot of methods to

measure the impact of social investments. However,

many organizations keep focussing on cost savings

and thus keep pushing the idea of health being a

cost-issue. These organizations do so, in order to

attract funding from governments. But if they would

look at it from another perspective the perspective

of citizens they will need to do more research on

value creation for citizens. Like willingness to pay

for services, valuegames, conjoint analysis, etc. But,

as said, we tend to keep measuring cost savings

because they seem more convincing for

governments, although cost savings are not really

the main mission of most health care organizations.

Is extended, in Europe, the performance

measurement in the healthcare sector? And in

the rest of the world?

It is increasing, we have to take a longer

perspective. About 20 years ago hardly anyone

asked the question about performance

measurement; now it is quite general and accepted.

There is also a shift from proces-management to

performance measurement. Not as two different

issues, but two types of measurement that should

be alligned.

Health care organizations can improve their outcome statements by adding this customer value

Baia Sprie is a very great example of what people are willing to invest, in order to have a hospital in their own city

Many organizations keep focussing on cost savings and thus keep pushing the idea of health being a cost-issue. These organizations do so, in order to attract funding from governments. But if they would look at it from the perspective of citizens, they will need to do more research on value creation for citizens. Like willingness to pay for services, valuegames, conjoint analysis, etc.

About 20 years ago hardly anyone asked the question about performance measurement; now it is quite general and accepted

Health is an important part and driver of our economy. But it is not only an economic issue. It is also about value creation for people

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Which is nowadays the role of the local

administration in creating the conditions to

promote business implantation of health relates

companies?

I am a bit less positive about local administrations

as such. They still keep on creating massive

bureaucratic systems; collecting mainly output data

about activities, worked hours (or better: worked

minutes). All information, that is not telling much

about the quality and impact of healthcare.

Local administrations have to much the role of an

accountant of output-numbers; they often (not

always!) lack the vision to separate relevant and

irrelevant informations.

What do you think this role should be and what

is needed to capture business in this field?

For businesses it is not only turnover that is

important; also questions about returning

customers, customer value perception, retention,

margins, etc.

Healthcare could use a bit of that more value-driven

spirit! Not (only) to make money, but to keep adding

value in the future!

Why is Health Innovation so hard to develop?

Is it? Pharmaceuticals invest a lot in innovation;

there is also a lot of innovation in treatments, etc. So

I am not sure if that is so hard. The question maybe

more, that innovation is pretty expensive, and

businesses make their business cases: is it feasible

to invest in specific types of innovation. So they are

very focused on specific types of innovations and on

results.

But many innovators in the public sector are funded

with public money. And that leads in some cases to

pretty lofty visions about innovation. Very general,

pretty vague Public money for innovation is not

always targeted or focussed on specific changes,

specific needs.

Specifically focusing on 4D Cities, which would

be good objectives for project partners to

execute impact measurement?

Not costs and activities, but outcomes; not the

service itself, but the impact of it.

And the most applicable methodology? Why?

There is not something like the most applicable

methodology. It always depends on the objectives

for the research. Customer value? Cost saving to

society? Quality of life? Is it done for decision

making, reporting or internal learning processes?

There are too many factors that influence the choice

of methodology. I think there are about 200 methods

Public money for innovation is not always targeted or focussed on specific changes, specific needs

Local administrations still keep collecting information that is not telling much about the quality and impact of healthcare. They have to much the role of an accountant of output-numbers

Innovation is pretty expensive, and businesses make their business cases. They are very focussed on specific types of innovations and on results

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available these days. Maybe also because many

consultancies develop their own tools and methods

in order to attract customers. Performance

measurement nowadays is a business!

My recommendation to everyone interested in

working on performance measurement is: ask

yourself what your objectives are. What do you

expect the measurement should deliver to you? If

you have no clear expectations about where you are

going, every method will bring you there.

Which is your opinion about the contribution

that 4D Cities can offer to promote the local

investment in the Health sector?

Being more specific about what is the problem and

what needs to be changed, and why. And to whom

that is really an important and urgent issue.

Keep things simple. Like the bicycle lane in

Lithuania: you are not selling bicycle lanes, but

health improvement through your facilities and

activities. It is not about the number of cyclists, not

about the number of activities or offerings. It is about

the change you are creating to your customer: the

local people.

PETER SCHOLTEN, biography

Peter Scholten obtained an MBA at the Erasmus

University in Rotterdam, the Netherlands. In 2002,

he studied Performance Measurement at the

Harvard Business School.

For the last decade, he has been working as a consultant and development advisor for organizations and enterprises with multiple objectives, ranging from financial and social. His areas of expertise include Performance Measurement and Management and Social Entrepreneurship. He co-introduced Social Return On Investment (SROI) in Europe and further developed this method and related tools.

Scholten has broad international experience. He

carried out various assignments in different

countries in Asia, Africa and Europe, as well as in

the US. Clients vary from small-scale developing

businesses to a wide range of non-profit

organizations, private foundations, governments

and educational institutions.

It is not about the number of cyclists, not about the number of activities or offerings. It is about the change you are creating to your customer: the local people

Ask yourself what your objectives are. What do you expect the measurement should deliver to you? If you have no clear expectations about where you are going, every method will bring you there

PUBLICATIONS

2013 M.v.d.Meij, P.Scholten. Dan ga ik liever op

vakantie (On social market research and

valuation)

2012 A-M. Harling, L. Hehenberger,P. Scholten,

A Practical Guide to Measuring and

Managing Impact

2009 B. Franssen, P. Scholten, M. Altink.

Handboek Cultureel Ondernemen (Guide

to Cultural entrepreneurship)

2008 B. Franssen, P. Scholten. Handbuch fr

Sozialunternehmertum (Guide to Social

entrepreneurship)

2007 B. Franssen, P. Scholten, Handboek voor

sociaal ondernemen in Nederland (Guide

to Social entrepreneurship in the NL)

2007 P. Scholten, J.Nicholls, S.Olsen,

B.Galimidi. Social Return on Investment -

A guide to SROI analysis

2007 G. Rebergen, P. Scholten. Caseboek - De

gebruikswaarde van SROI (Case-book on

SROI)

2005 P. Scholten (eds.). Handboek Social

Return on Investment (Guide to Social

Return on Investment)

2003 P. Scholten. Maatschappelijk Rendement

Gemeten (Social return measured)

I think there are about 200 methods available to execute impact measurement these days

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THE GALLERY NEWS, EVENTS, CURIOSITIES... ABOUT THE PROJECT

4D Cities Final Event Citizen focused Health Innovation as a local growth driver 31st March 1st April 2015, Igualada (Catalonia, Spain)

Venue The Leather Museum, Igualada (Catalonia, Spain) Programme Tuesday 31

st March

9.00-9.30 Welcome and accreditations 9.30-9.40 Official welcome by Mr. Marc Castells, Mayor of Igualada 9.40-10.30 Health Innovation: What and Why 10.30-11.00 1

st Round of partners presentations: Leeds & Plunge

11.00-11.30 Coffee break 11.30-12.15 Project findings 12.15-12.45 2

nd Round of partners presentations: Eindhoven & Baia Sprie

12.45-13.30 Press Conference 13.30-15.00 Lunch 15.00-15.30 3

rd Round of partners presentations: Jena & Novara

15.30-16.30 Cities investing in Internationalization 16.30-17.30 Visit to the Igualada 4D Health Innovation Simulation Center 21.00-23.00 Dinner Wednesday 1

st April

9.00-9.30 Policy Recommendations 9.30-10.30 4

th Round of partners presentations: Igualada & Tartu

10.30-11.00 Coffee break 11.00-12.00 Implementation of Local Action Plans 12.00-12.30 Key outcomes and future expectations for 4D Cities partners 12.30-13:30 Closure 13.30-15.00 Lunch and farewell

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CONTACT

More information:

www.urbact.eu/4d-cities

www.facebook.com/URBACT4DCities

www.twitter.com/URBACT_4DCities

@URBACT_4DCities

www.youtube.com/URBACT4DCities

www.vimeo.com/URBACT4DCities

Subscribe for the 4D Cities Newsletter: send an email to communication@4dcities.eu

THE LEAD PARTNER TEAM

Project Lead

ngels Chacn chacona@aj-igualada.net

Thematic Expert

Dr. Enric Macarulla thematicexpert@4dcities.eu

Lead Expert

Mireia Sanbria leadexpert@4dcities.eu

Technical Officer

Raquel Garcia garciar@aj-igualada.net

Financial Officer

Elisa Carbonell carbonelle@aj-igualada.net

Communication Officer

Nria Caamares communication@4dcities.eu

URBACT is a European exchange and learning

programme promoting sustainable urban development.

It enables cities to work together to develop solutions to

major urban challenges, reaffirming the key role they

play in facing increasingly complex societal challenges.

It helps them to develop pragmatic solutions that are

new and sustainable, and that integrate economic,

social and environmental dimensions. It enables cities

to share good practices and lessons learned with all

professionals involved in urban policy throughout

Europe. URBACT is 500 cities, 29 countries, and 7,000

active participants.

4D Cities is an URBACT project that aims to develop

cities through the interaction of the actors which operate

in the fields of Health and Innovation such as the

knowledge, the healthcare system, the business and the

citizens. It involves 8 European cities that would like to

create a new productive sector which contributes to the

diversification and enhancement of the economic

activities and social cohesion of their territories. The

partners are Igualada (Catalonia, Spain) as a leader,

Leeds (United Kingdom), Novara (Italy), Tartu (Estonia),

Plunge (Lithuania), Brainport Eindhoven Region

(Netherlands), Business Development Corporation of

Jena (Germany) and Baia Sprie (Romania).

www.urbact.eu/4d-cities

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