From value creation to value capture practices in healthcare innovation collaborations

Healthcare is a challenging field for innovation: it is characterised by complex regulation and needs for enhanced collaboration between public and private actors who differ in terms of their motivations, innovation needs, and institutional logics. These complexities relate to multiple ways of approaching value capture in terms of securing financial or non-financial benefits from value creation in innovation collaboration. At the same time, existing scholarly knowledge offers limited help to understand or manage value capture practices in public-private collaborations. Exploring the specific practices of value capture is needed not only to understand how the returns from shared value creation activities are secured but also to understand why public and private organisations should invest their limited resources in collaboration in the first place. Applying insights from the innovation management and industrial marketing literatures, the present case study explores value capture practices in public-private collaborations for healthcare technological innovation. Empirically, it draws from twelve collaborations between a public hospital and private firms providing insight into both private firms and a public hospital organization. As a result, the study suggests a categorisation of value capture practices emerging in innovation collaboration in healthcare, thereby explicating how such practices incorporate approaches of both public and private sector participants.