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Article

Open Access

Disruptive Innovation in the Nordic Countries’Healthcare Systems

Author(s)

Henning Sejer Jakobsen, Ivar Moltke, Jacob Brix

Full-Text PDF Download XML 355 Views

DOI:10.17265/1537-1506/2014.03.004

Affiliation(s)

Henning Sejer Jakobsen, M.Sc. (Ing.), Executive MBA, Senior Scientist at the Danish Technological Institute, Center for Ideas and Innovation.
Ivar Moltke, MA (Arch), Head of Innovation at Health Innovation Zealand.
Jacob Brix, MA (corp. comm.), Ph.D., Assistant Professor, School of Business and Social Sciences, Aarhus University.

ABSTRACT

The Nordic healthcare model is recognized to be one of the most innovative in the world. Here billions of USD are annually invested in developing new treatments, drugs, robots etc. to diagnose and cure diseases. Nevertheless, this study establishes that there is a fundamental shortcoming in the system that supports healthcare innovation: It is strongly biased towards micro-level innovation projects focusing on new products, alternative processes, and new financial solutions. The problem with this approach to support new projects is that the results are created as inventions within the system thus lacking holistic perspectives. This has consequently contributed with increasing costs that are out of proportion with existing budgets. Therefore this study seeks to analyze the current understanding of the Nordic healthcare system from a business model perspective. Here other aspects of the healthcare system are explored to determine if they could be redesigned to promote new types of innovation projects. The purpose of undertaking this task is to challenge the established patterns of the current healthcare innovation support practices. Here the vertical innovation process (VIP) framework, which is a systematic radical innovation model that seeks macro-level outcomes based on standalone inventions (see more below), is applied to analyze the current state-of-the-art in Nordic healthcare innovation projects. The results determine that very little attention is given to rethink and redesign the healthcare system at a macro-level, and it is discussed that stand-alone inventions ought to be rethought into the entire healthcare system to create a larger impact. Finally, it is argued that existing performance measures are inappropriate to foster projects that innovate the existing system: New measuring points should be developed to promote macro-level projects and to avoid the current rapid increase of costs in the Nordic healthcare system.

KEYWORDS

disruptive innovation, radical innovation, healthcare innovation, business model innovation

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