Pre-Commercial Public-Private Innovation in the Danish Healthcare Sector

Inge Marstrand Kristensen

Student thesis: Master thesis


The aim of this study was to investigate Public-Private Innovation (PPI) and provide insights on what factors to prioritise in addressing the problem of attracting private medico companies to engage in a two-stage model proposed by the Danish Regions. The study therefore tested a structural equation model (SEM) of factors influencing Private Medico Companies’ Propensity of Engaging in Pre-commercial PPIs with the Danish Regions. The proposed SEM draws upon a framework developed by Sambasivan et al. (2013), which measures the success of inter-firm strategic alliances. Based on a number of interviews the inter-firm framework was modified by changing the construct measuring success to a construct measuring the propensity of engagement. The interviews also led to the introduction of an additional construct, Manager Motivation. The result of the modifications was a model that better captures the aspects of PPI. Self-administered questionnaires were used to collect data from 31 Danish medico companies and the model was estimated via Partial Least Squares. Testing the SEM returned seven statistically significant factors influencing the propensity to engage; Environment, Strategic Alliance Motive, Asset Specificity, Perception of Opportunistic Behaviour, Interdependence, Relational Capital and Manager Motivation. These factors are able to explain 78.2% of the variance in the Propensity of Private Medico Companies Engaging in Pre-commercial PPIs with the Danish Regions. Perception of Opportunistic Behaviour, Manager Motivation and Relational Capital directly influence the propensity to engage. With a path coefficient of 0.438, Manager Motivation has the strongest direct influence on the propensity to engage. Additionally, Interdependence, Asset Specificity, Strategic Alliance Motive and Environment indirectly influence the propensity to engage through Relational Capital. Changing the perspective from inter-firm to Public-Private caused a proposed mediation effect of Relational Capital to be insignificant for the effect of Asset Specificity and Perception of Opportunistic Behaviour on the propensity to engage. Furthermore, the effect of Asset Specificity on Interdependence turned out to be insignificant.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
Publication date2013
Number of pages79