Abstract
Healthcare providers are under ever increasing pressure to deliver more technologically advanced care without increasing costs. Innovation is essential (Darzi, 2008), and for this healthcare providers rely on innovation within commercial companies. SMEs have an important part to play in this sector (NHS Supply Chain Parliamentary Brief, 2013). Collaboration between SME suppliers and the NHS for innovation forms the focus of this paper. We examine the academic literature on interorganizational innovation including academic insights from the areas of forward commitment procurement (Environmental Innovation Advisory Group, 2003-2008), pre-commercial procurement (Bos & Corvers, 2007), innovation and SMEs. We then explore practice, first from a policy and business sector perspective. Second, we present evidence from fifteen cases of interorganizational innovation projects involving SMEs and UK healthcare providers. Our findings show much effort is being put into creating opportunities for more interorganizational innovation of medical devices. Working across organizational boundaries presents added complexity to the innovation environment and process, and the challenge of developing high-quality cross-boundary group interaction.References
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Hagedoorn, J. (2002). Inter-firm R&D Partnerships: an Overview of Major Trends and Patterns Since 1960. Research Policy, 31(4): pp. 477–492.
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[Submitted]
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Loader, K. (2007). The Challenge of Competitive Procurement: Value for Money vs. Small Business Support. Public Money and Management, 27(5): pp. 307-314.
Mahmood, I. P. & Lee, C-Y. (2004) Business Groups: Entry Barrier-Innovation Debate Revisited. Journal of Economic Behaviour and Organization, 54(4): pp. 513-531.
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RLH NHS Trust (2009). How We Fit into the NHS Structure. The Royal Liverpool and Broadgreen Univerity Hospitals NHS Trust
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Wageman, R., Hackman, J. R. & Lehman, E. (2005). Team Diagnostic Survey: Development of an Instrument. Journal of Applied Behavioural Science, 41(4): pp. 373-398.
Weisbrod, B.A. (1991). The Health Care Quadrilemma: An Essay on Technological Change, Insurance, Quality of Care, and Cost Containment. Journal of Economic Literature, 29(2): pp. 523-552.
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Helsinki EU Commission Conference on Enterprise and Industry, November 2012.
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Albanese, R. (1994). Team-building Process: Key to Better Project Results. Journal of Management in Engineering, 10(6): pp. 36-44.
Ancarani, A., Di Mauro, C. & Giammanco, M. D. (2009). How are Organisational Climate Models and Patient Satisfaction Related? A Competing Value Framework Approach. Social Science & Medicine, 69(12): pp. 1813-1818.
Audretsch, D. B. (2004). Sustaining Innovation and Growth: Public Policy Support for Entrepreneurship. Industry and Innovation, 11: pp. 167–191.
Bedwell, W. L., Wildman, J. L., DiazGranados, D., Salazar, M., Kramer, W. S., & Salas, E. (2012). Collaboration at Work: An Integrative Multilevel Conceptualization. Human Resource Management Review, 22: pp. 128-145.
Benner, M.J. & Tushman, M.L. (2003). Exploitation, Exploration, and Process Management: The Productivity Dilemma Revisited. Academy of Management Review; 28(2): pp. 238-256.
Bishop, J. W. & Dow-Scott, K. (1997). How Commitment Affects Team Performance. HR Magazine, 42(2): pp. 107-111.
Bishop, J. W. & Dow-Scott, K. (2000). An Examination of Organisational and Team Commitment in a Self-Directed Team Environment. Journal of Applied Psychology, 85(3): pp. 439-450.
Blindenbach – Driessen, F. & Van den Ende, J. (2006). Innovation in Project-Based Firms: The Context Dependency of Success Factors. Research Policy, 35: pp. 545-561.
Bolwijn, P. T. & Kumpe, T. (1990). Manufacturing in the 1990s: Productivity, Flexibility and Innovation. Long Range Planning, 23(4): pp. 44–57.
Booth, L. (2013). Public Procurement: Small Business and Savings. Economy Policy and Statements – Programme for Government May 2011. Her Majesty’s Government; London,
UK.
Bos, L. (2008). Pre-Commercial Procurement in Europe. European Commission DG INFSO; Strategy for ICT Research and Innovation Unit.
Bos, L. & Corvers, S. (2007). Pre-commercial Public Procurement. A Missing Link in the European Innovation Cycle. Public Needs as a Driver for Innovation.5 Tijdschrift
Aanbestedingsrecht 3,3.
Brown, S. L. & Eisenhardt, K. M. (1997). The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations. Administrative Science Quarterly, 42(1): pp. 1-34.
Chan, A. P. C., Ho, D. C. K. & Tam, C. M. (2001). Effect of Interorganizational Teamwork on Project Outcomes. Journal of Management in Engineering, 17(1): pp. 34-40.
Darzi, A. (2008). High Quality Care for All: NHS Next Stage Review Final Report. London: Department of Health.
Deeds, D.L. & Rothaermel, F.T. (2003). Honeymoons and Liabilities: The Relationship Between Age and Performance in Research and Development Alliances. Journal of Product Innovation Management, 20(6): pp. 468-484.
Department of Health (2009). National Innovation Procurement Plan. London: Department of Health.
Department of Health (2011). NHS Chief Executive Innovation Review. Department of Health; Innovation Policy Branch.
Department of Health (2012). Innovation, Health & Wealth Review: Accelerating Adoption and Diffusion in the NHS.
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Department of Health (2013). Payment by Results Guidance for 2013 – 14. Payment by Results Team, Department of Health: Leeds.
Duncan, R. B. (1976). The Ambidextrous Organization: Designing Dual Structures for Innovation. In R. H. Kilmann, L. R. Pondy, & D. Slevin (Eds.), The Management of Organization, Vol. 1: 167–188. New York: North-Holland.
Edler, J. & Georghiou, L. (2007). Public Procurement and Innovation – Resurrecting the Demand Side. Research Policy, 36(7): pp. 949-963.
Edquist, C. & Zabala-Iturriagagoitia, J. M. (2012). Why Pre-commercial Procurement is not Innovation Procurement. CIRCLE Working Papers 2012/11; CIRCLE – Center for
Innovation, Research and Competencies in the Learning Economy, Lund University, Sweden.
Faems, D., Van Looy, B. & Debackere, K. (2005). Interorganizational Collaboration and Innovation: Toward a Portfolio Approach. Journal of Product Innovation Management, 22(3): pp. 238-250.
Grandori, A. & Soda, G. (1995). Inter-firm Networks: Antecedents, Mechanisms and Forms. Organization Studies, 16(2): pp. 183–214.
Grimshaw, D., Vincent, S. & Willmott, H. (2002). Going Privately: Partnership and Outsourcing in the UK Public Services. Public Administration, 80(3): pp. 475 – 502.
Gupta, A. K., Smith, K. G. & Shalley, C. E. (2006). The Interplay Between Exploration and Exploitation. Academy of Management Journal, 49(4): pp. 693-706.
Hagedoorn, J. (2002). Inter-firm R&D Partnerships: an Overview of Major Trends and Patterns Since 1960. Research Policy, 31(4): pp. 477–492.
Hall, L. A. & Bagchi-Sen, S. (2002). A Study of R&D, Innovation and Business Performance in the Canadian Biotechnology Industry. Technovation, 22(4): pp. 231-244.
Harland, C. M., Rudd, A., Knight, L. A., Forrest, S. & Bakker, E. F. (2007). Procurement in the English National Health Service in L. A. Knight, C. M. Harland, J. Telgen, K. V. Thai, G. Callender & K. E. McKen (Eds) Public Procurement: International Cases and Commentary. London, UK: Routledge pp. 42-59.
Her Majesty’s Government (2010). The Coalition: Our Programme for Government. HM Government: London, UK.
Her Majesty’s Government (2010). Spending Review 2010. HM Government: London,UK.
Her Majesty’s Government (2013). Spending Review 2013. HM Government: London,UK.
Her Majesty’s Treasury (2013). Spending Round 2013 (Vol. 8639). Stationery Office: Great Britain.
Herzlinger, R. E. (2006). Why innovation in Healthcare is So Hard. Harvard Business Review, 84(5): pp. 58-66.
Johnsen, T., Calvi, R. and Phillips, W. (2012). Discontinuous Innovation: A Challenge for Purchasing. To be published in Journal of Supply Chain Management. ISSN 1523-2409
[Submitted]
Johnsen, T.E. (2009). Supplier Involvement in Product Development and Innovation – Taking Stock and Looking to the Future. Journal of Purchasing & Supply Management, 15(3):
pp. 187-197.
Lansisalmi, H., Kivimaki, M., Aalto, P. & Ruoranen, R. (2006). Innovation in Healthcare: A Systematic Review of Recent Research. Nursing Science Quarterly, 19(1): pp. 66-72.
Lincoln, Y. and Guba, E. (1985) Naturalistic Inquiry. London: Sage.
Loader, K. (2007). The Challenge of Competitive Procurement: Value for Money vs. Small Business Support. Public Money and Management, 27(5): pp. 307-314.
Mahmood, I. P. & Lee, C-Y. (2004) Business Groups: Entry Barrier-Innovation Debate Revisited. Journal of Economic Behaviour and Organization, 54(4): pp. 513-531.
Martin, S. J., Enticott, G., Entwistle, P Walter, T. & Chen, A. (2005). Drivers of the Performance of Public Services: An Empirical Analysis of the Impact of Current Reforms. Presented at British Academy of Management (BAM) Conference 2005, Oxford, UK, 13-15 September 2005.
Newell, S. & Swan, J. (2000). Trust and Inter-organizational Networking. Human Relations, 53(10): pp. 1287-1328.
Newell, S., Goussevskaia, A., Swan, J., Bresnen, M., & Obembe, A. (2008). Interdependencies in Complex Project Ecologies: The Case of Biomedical Innovation. Long Range Planning, 41(1): pp. 33–54.
NHS National Innovation Centre Website (2013).
NHS Supply Chain Parliamentary Brief (2013). NHS Supply Chain: An SME Champion.Parliamentary Brief, Spring 2013.
O’Reilly, C .A. and Tushman, M. L. (2004). The Ambidextrous Organization. Harvard Business Review, April: pp. 74-83.
Phillips, W. E., Knight, L. A., Caldwell, N. D., Warrington, J. (2007). Policy Through Procurement – the Introduction of Digital Signal Process (DSP) Hearing Aids into the English NHS. Health Policy, 80(1): pp. 77-85.
Primo, M.A.M. and Amundson, S.D. (2002). An Exploratory Study of the Effects of Supplier Relationships on New Product Development Outcomes. Journal of Operations Management, 20(1): pp. 33-52.
Provan, K. G., Fish, A., & Sydow, J. (2007) Interorganizational Networks at the Network Level: A Review of the Empirical Literature on Whole Networks. Journal of Management,
33(3): pp. 479-516.
Riemer-Reiss, M. L. (1999). Applying Rogers’ Diffusion of Innovations Theory to Assistive Technology Discontinuance. Journal of Applied Rehabilitation Counseling, 30(4): pp.
16-21.
Rigby, J. (2013). Review of Pre-commercial Procurement Approaches and Effects on Innovation Compendium of Evidence on the Effectiveness of Innovation Policy Intervention. Manchester Institute of Innovation Research, Manchester Business School, University of Manchester.
RLH NHS Trust (2009). How We Fit into the NHS Structure. The Royal Liverpool and Broadgreen Univerity Hospitals NHS Trust
Rolfstam, R. (2012). An Institutional Approach to Research on Public Procurement of Innovation. Innovation: The European Journal of Social Science Research, 25(3): pp. 303 – 321.
Schoonhoven, C. B.,& Jelinek, M. (1990). Dynamic Tension in Innovative, High Technology Firms: Managing Rapid Technological Change Through Organizational Culture. In: M. A. Von Glinow, and S. A. Mohrman (Eds) Managing Complexity in High Technology Organizations. Oxford University Press: New York pp. 90-118.
Shaw, B. F. (1986). The Role of the Interaction Between the Manufacturer and the User in the Technological Innovation Process. Ph.D. Dissertation. University of Sussex, Sussex, UK.
Smith Ring, P., & Van de Ven, A. H. (1994). Developmental Process of Co-Operative Interorganizational Relationships. The Academy of Management Review, 19(1): pp. 90-118.
Sorenson, C., Drummond, M. & Wilkinson, G. (2013). Use of Innovation Payments to Encourage the Adoption of New Medical Technologies in the English NHS. Health Policy and Technology, 2(3): pp. 168 – 173.
Talbot-Smith, A., & Pollock, A. M. (2006). The New NHS A Guide: A Guide to Its Funding, Organisation and Accountability. Routledge: London, UK.
Van Meerveld, H., Nauta, N.J., Voordijk, J.T. and Whyles, G. (2012). The Effects of the Forward Commitment Procurement Method on Perceived Risks in Projects Concerning Public Procurement of Innovation in the Healthcare Sector. Proceeedings of the HaCIRIC International Conference.
Wageman, R., Hackman, J. R. & Lehman, E. (2005). Team Diagnostic Survey: Development of an Instrument. Journal of Applied Behavioural Science, 41(4): pp. 373-398.
Weisbrod, B.A. (1991). The Health Care Quadrilemma: An Essay on Technological Change, Insurance, Quality of Care, and Cost Containment. Journal of Economic Literature, 29(2): pp. 523-552.
Wert, B. (2012). Driving Innovation through Public Procurement Innovation and Growth through Demand: Demand-driven Innovation and Public Procurement in Nordic Countries.
Helsinki EU Commission Conference on Enterprise and Industry, November 2012.
West, M. A. & Farr, J. L. (1990). Innovation and Creativity at Work: Psychological and Organizational Strategies. Chichester: John Wiley & Sons Ltd pp. 3-13.
Willetts, D. (2011). Strategy for UK Life Sciences: Summary of Actions from the Strategy for UK Life Sciences. The Department for Business, innovation and Skills; Office for Life Sciences, December 2011.
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