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2016/2017  KAN-CIHCO1002U  The Economics of Health Care Innovation

English Title
The Economics of Health Care Innovation

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory offered as elective
Level Full Degree Master
Duration One Quarter
Start time of the course Autumn, Second Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 30
Study board
Study Board for MSc in Business Administration and Innovation in Health Care
Course coordinator
  • Valentina Tartari - Department of Innovation and Organizational Economics (INO)
Main academic disciplines
  • Innovation
  • Statistics and quantitative methods
  • Economics
Last updated on 04-03-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Recognize how the economics and governance of different organizational types (firms, public health care organizations) affect their behavior in innovation.
  • Ability to apply data analytics to decisions on IHC.
  • Skills in analyzing and handling inter-organizational collaboration on innovation, such as e.g. public-private partnerships
  • Competence to integrate a number of factors, internal and external to the organization, in decision-related analysis
Course prerequisites
15 seats til CBS students
15 seats to exchange students
Examination
The Economics of Health Care Innovation:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and second internal examiner
Exam period Winter and Winter, Eksaminator fra CBS og bi-eksaminator fra KU
Aids allowed to bring to the exam Closed book: no aids:
  • Written sit-in-exam on CBS' computers
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content and structure

Innovations in health care are made in different context, e.g. by firms as an instrument of competition, by non-profits organizations as instrument for improvement of their services or for reducing their costs, or by medical professionals for improved care of their patients.  In all these different contexts innovations are shaped by economic factors affecting the way they are conceived, developed, implemented  or accepted by their markets and its users. This course enables students to analyze innovations and to contribute to their managerial decision processes from this economic perspective. It also trains students in data analytics and quantitative methods applied to IHC. 

  1. The course starts out with an intensive course in data analytics, giving students the tools for examining data and applying them to decision in IHC. These tools will be applied to a number of subsequent topics addressed in the course.
  2. Innovations grow out of opportunities and their combinations. Theories on innovation explain their building blocks and the cognitive and economic factors shaping the transformation of opportunities into inventions and innovations
  3. Innovations are associated with risks, costs and efforts and will be undertaken only if the innovating agent is adequately incentivized. For firms this involves the challenge of appropriating the returns on their innovation costs through patenting or other efforts aimed at appropriation. For public institutions, such as hospitals, the innovations are linked to incentives in more complicated ways affecting the way they are conceived, carried out, prioritized and implemented.   
  4. Technologies evolve in cyclical patterns, affecting the undertraining and adoption of specific innovations Understanding technology cycles is required for a broad range of decisions in the undertaking and adoption of specific innovations.
  5. Companies and other organisations are guided by strategies, and innovations ideally should be strategically consistent in the way they are pursued or adopted. In reality for companies this questions of strategic consistency is less straightforward. And the question presents further complications for a public health care system guided by multiple strategic goals some of which represent ongoing compromises. The assessment and prioritization of innovation from a strategic perspective gives rise to a number of challenges for innovation management.
  6. Health care to large extent consists of services. Innovation in services represents a number of challenges different from those found in manufactured products. The strong “people component” of services make them difficult to standardize, scale and apply into effective diffusion, and  innovative service organizations have been required to manage their innovations in new ways. Students must understand these service characteristics, and the way they are addressed in innovation strategies.
  7. Markets for technology, Alliances and collaboration in R&D. In innovation-intensive sectors, collaboration has become a crucial part of firms’ strategy. Students will need to understand the similarities and differences between collaboration with suppliers, collaboration with competitors, and collaboration between firms in different stages of the value chain. Focus will be put on analyzing how collaboration can promote/hinder innovation. 8. Public-private partnerships . Public-private partnerships (PPP) involve a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project.  This form of collaboration is particularly relevant for health care, as many actors are public entities. Students will learn what are the characteristics of PPP and what are the challenges in terms of evaluating and managing this kind of contracts.
Teaching methods
Teaching includes lecture-style classes, in-class workshops with students presenting and actively participating in discussions around pre-assigned cases and/or exercises, and guest presentations by practitioners. Preparation before class is of crucial importance.
Student workload
lectures 30 hours
crash course 20 hours
preparation of sessions 75 hours
class presentation/project 35 hours
exam preparation and exam 65 hours
Expected literature
  • Schilling, Melissa A. (2012). Strategic management of technological innovation (4th edition), McGraw-Hill, New York.
  • Wisniewski, M. (2009), Quantitative methods for decision makers, 5th edn. FT Prentice Hall
Last updated on 04-03-2016