Firms’ reshaping of commercialization practices to overcome the ‘not invented here’ phenomenon in public healthcare organizations

Abstract

The present study is rooted in Public Private Innovation (PPI) projects where public hospitals and private firms engage in cross-sector collaboration with a view to developing new welfare solutions targeting public sector needs. Research into PPI is mainly focused on public management of innovation processes. Consequently, PPI is rarely examined from a private sector perspective, including how private firms seek to commercialize new innovations after co-creating these innovations in collaboration with public organizations. However, commercialization is a critical aspect of innovation because it embraces the learning process whereby newly developed innovations are put into use in society so that they may create value for citizens as well as public servants while generating value in private firms. This article contributes to the literature on collaborative innovation in the public sector by elucidating how private firms commercialize co-created welfare solutions. The empirical setting is a multiple case study consisting of four PPI projects conducted in public Danish healthcare. The findings reveal that PPI firms experience the ‘not invented here’ (NIH) phenomenon across Danish hospitals. This phenomenon appears in the short run to hamper the firms’ commercialization of new welfare innovations. However, in the longer run, firms respond to NIH by reshaping their commercialization practices as they redirect their focus towards the potential benefits of exporting their new welfare solutions to international healthcare systems.

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