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2018/2019  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 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 Strategy and Innovation (SI)
Main academic disciplines
  • Innovation
  • Statistics and quantitative methods
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 15-06-2018

Relevant links

Learning objectives
  • 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
The Economics of Health Care Innovation:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
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
Aids Limited aids, see the list below:
The student is allowed to bring
  • Non-programmable, financial calculators: HP10bll+ or Texas BA II Plus
  • Language dictionaries in paper format
The student will have access to
  • Advanced IT application package
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.
The form of this exam may be changed for the make-up exam. If the number of registered participants for the make-up exam warrants it , the make-up exam may most appropriately be held as an oral exam (20 minutes without preparation).There will be a second internal examiner for the oral exam.
Course content and structure

Healthcare systems across the world are facing increasing challenges, such as ageing populations, ensuring a fair access in developing countries, increasing costs. Innovative thinking is crucial to meet these challenges but it is also equally important to understand how the various actors can manage innovation successfully.

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 organizations 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. In addition, 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. 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.
Description of the 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.
Feedback during the teaching period
Feedback will given at a session after the exam has taken place.
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

J. Barlow "Managing Innovation in Healthcare", World Scientific

Last updated on 15-06-2018