Application of Strategic Contracting on Knowledge-based Collaborations Between the Public and Private to Achieve Relational Rents: An Analysis of the Collaboration to Develop Precision Medicines

René Michelsen Jensen & Sebastian Eamonn Denham

Student thesis: Master thesis


The purpose of this thesis is to examine how the use of strategic contracting can contribute to developing a collaboration model for the case of the potential Danish public-private corporation to develop precision medicines. The thesis is divided in three parts of analysis with six subsections; a law analysis, an economic analysis and a combined section integrating the findings from the two. This will be used to introduce a reasonable and well-founded solution to the problem area of the thesis. The analysis is based on academic literature and conducted analysis. The conclusion of the legal area of the thesis problem is presented through the question of what legal constraints and opportunities are prevailing to the use of healthcare data in the collaboration. The main component to the collaboration is the use of and access to public healthcare data. Furthermore, it is relevant for the collaboration to identify how ownership and intellectual property rights to healthcare data are distributed. The conclusions to these questions are that healthcare data to some extent will be readily available to use in the collaboration and the public will obtain intellectual property rights protection when gathering the healthcare data in databases. From the economic analysis the value of information in the collaboration was investigated to understand how to best structure knowledge sharing between the parties. Furthermore, it was investigated how to regulate the collaboration most efficient to exploit the knowledge without escalating costs. To these questions it was concluded that each party contains knowledge and information, which would be of great value to the other party. The best way to share knowledge would be to innovate closely together. However, it is also important to structure the contract with incentives for the parties to continuously share their knowledge and not behave opportunistic. Lastly the integrated section combined the findings of the two above-mentioned areas, this resulted in a proposed contract paradigm, which used the regulatory framework and the qualifications from the economic analysis to suggest how the collaboration should be structured to create the best circumstances for generating relational rents

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2018
Number of pages131
SupervisorsKim Østergaard