Rowena Young - 25.11.2009
NESTA's call for radical innovation in public services found a new level of comfort among decision-makers in the NHS this month. As the thinking has evolved about how cuts in budgets could be met, the penny suddenly dropped.
The cuts are demanding: no less than £15-20bn has to be saved by 2011. Some think up to half can be met through efficiencies (though some think that optimistic). So the choice for the rest appears to be cut, or innovate.
This work has had the benefit of underscoring the value of the new Regional Innovation Funds in being able not just to allocate their resources wisely - a modest £220m over 5 years - but to influence a widespread change in the support for radical innovation across the NHS. Given the scale of change, we need a game of reform by two halves. The infrastructure, mindsets and culture, tools and knowledge to foster innovation need to become as mature and robust as those exercised in the name of efficiency.
A daunting task? Yes. But a doable one? Our experience tells us it is, so long as you are willing to learn by doing.
The Strategic Health Authorities are warming to the theme. Most have launched their funds, opting for a range of approaches from larger, stage-gate investments to user-centred innovation. Their enthusiasm is shared - applications in some areas have topped 250. These experiments will offer important clues to what will work to create step changes in health and economic gains.
T +44 (0)20 7438 2500
F +44 (0)20 7438 2501
Nesta Operating Company, a company limited by guarantee registered in England and Wales with company number 7706036 and charity number 1144091. Registered as a charity in Scotland number SC042833.
Add your comment
In order to post a comment you need to
be registered and signed in.
mjb
09 Dec 09, 1:57pm (3 yearss ago)
Innovation in the NHS
Clearly, initiatives to kick-start innovation in the NHS are to be welcomed, but it is optimistic to suggest that £220m of innovation funding will have any significant impact on a £20b budget deficit. In pre-recessionary days, venture capital portfolios returned around 20%, although it has to be said primarily from MBOs rather than investing in early stage technology. A 20% return over 5 years on a £220m investment will realise about £550m, hardly a dent in £20b. It is unlikley that SHAs will come anywhere close to replicating the performance of VCs; recall what happened to University Challenge Funds - hardly a formula for success. It is also clear that the NHS needs to be held accountable for outcomes from the £500m annual R&D budget. Innovation Hubs have had limited success in generating commercial success from NHS R&D. Moving the NHS R&D and Innovation agenda forward is to be welcomed, but it will need to be lead from outside the current bureaucracy. Michael Brand Captum Capital Limited