TODAY every Industry is a Tech Industry… Except Healthcare

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TODAY every Industry is a Tech Industry… Except Healthcare All of these businesses are IP and data-driven

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@WIN_Health & @SCAN_Health Dr. Anne Snowdon, BScN, MSc, PhD, FAAN Professor, Strategy and Entrepreneurship Academic Chair, World Health Innovation Network (WIN) Scientific Director & CEO, Supply Chain Advancement Network in Health (SCAN Health) Odette School of Business


TODAY every Industry is a Tech Industry‌ Except Healthcare Advertising Music Retail Media Taxi/Transportation Hospitality /Travel Entertainment Executive Search Food & Agriculture

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Google Apple, Spotify Amazon Facebook Uber, Lyft AirBnB Netflix LinkedIn (Microsoft) Monsanto, John Deere

All of these businesses are IP and data-driven Cantech Conference Jan 2019 Jim Balsillie


Growth in gross domestic product for the digital economy and the total economy, Canada, 2011 to 2017 (Statistics Canada, 2019)


Services and Communications produce twice the GDP growth compared to products, hardware, e-commerce. (Statistics Canada, 2019)


Digital Economy in the U.S.


USPTO – Patent Filings

PCT Applications Filed

INNOVATION OUTPUT: Patent Cooperation Treaty – Patent Filings

Source: http://www.wipo.int/pct/en/3million/index.html

“Patents are the most concrete and comparable measure of innovative output over countries and time.” The IT Revolution and the Globalization of R&D (http://www.nber.org/papers/w24707)

Cantech Conference Jan 2019 Jim Balsillie


Change in Patent Cooperation Treaty Filings from 2014 to 2017 740%

143% 131% 91% 45% 41%

28% 26%

20% 20% 19% 16% 15% 14%

13% 12% 10% 10% 9% 7% 6% 6% 5% 5% 2% 2% 1% -1% -3% -4% -5% -5% -7% -8% -8% -12% -18%-18%-21%-22%

Canada

New Zealand

Greece

Spain

Finland

USA

Singapore

Hungary

Mexico

Poland

South Africa

France

Saudi Arabia

Austria

Sweden

Brazil

Italy

Netherlands

Germany

United Kingdom

Australia

Ireland

Switzerland

Denmark

India

Belgium

Japan

Israel

Russia

Chile

Norway

South Korea

Portugal

Luxembourg

Colombia

Turkey

China

Thailand

Malaysia

Ukraine

Top 5 Countries (Increased Filings) • China +23,334 • Ukraine +1,088 • Turkey +382 • Thailand +89 • Malaysia +83

Bottom 5 Countries (Decreased Filings) • Canada -687 • Spain -307 • Finland -216 Cantech Conference Jan. 2019 • New Zealand -74 Jim Balsillie • Greece -23


Tangible Economy Objective: manufacture and sell products, goal is to move inventory Revenue: producing and selling physical goods Intangible Economy

“What is an Intangible Economy?�

Objective: amass and protect valuable data, transformed into IP Revenue: customers pay for access to services, knowledge emerging from IP and data tools


THE HEALTH SECTOR TODAY: TANGIBLE PRODUCTS The 10 highest grossing drugs in the U.S., number of people that improve (blue) vs. number that fail to improve (red) What is the Value of “tangible� product focus to date?

Unsustainable Costs for health systems Value for some citizens but not many Growing Prevalence of Chronic Illness Personalized medicine: Time for one-person trials Nicholas J. Schork Nature 2015. Volume 520, Issue 7549


The Cost of Device Failure for Global Health Systems

The ‘Implant Files’ is a year-long deep dive into the medical device industry


Innovation in Health Care: Glacial

https://www.independent.co.uk/news/health/nhs-ban-fax-machines-2020-cyber-security-matt-hancock-a8674411.html


Chronic disease is responsible for 75% of total health care costs in the U.S., existing care delivery models not well constructed to manage chronic illness effectively (Milani, et al, 2016)


What could the “intangible” economy achieve for the Health Sector? Today’s Health Economy: “Tangible” Products • Objective = sell products (drugs, supplies, devices, capital equipment • Revenue: sales of physical goods • Performance: in North America is poor

Tomorrow’s Health Economy: ”Intangible” Services • Objective: mobilize health data, transformed into rich IP, that become the solutions for global health system

• Revenue: IP rich data tools, health services, real world evidence strategy • Performance: economic growth and health system performance


WHAT ARE THE KEY ASSETS TO WORK WITH? Data: diverse populations, 2 different health system delivery Talent: 18 top Universities, largest employment is health


 Experience: every clinician encounter has all of my data, understands my health goals, partners with me to achieve my goals

What Citizens Want and Need – “Intangible Tools and Services”

 Ease of Access: (virtual) specialist care when and where needed  Choices: care delivery options (online, in person, virtual teams)  Price Transparency: cost up front, not on the invoice at discharge  Guidance and Wayfinding: information that is relevant on where to access care and what care is needed  Safety-Quality: confidence I am getting the best possible care, based on real world evidence of people like me  Literacy Tools: (ex. Mint, Schwab) tools that translate health data into meaningful knowledge so people can make decisions  Traceability and Transparency: automated error reporting, risk alerts to support and manage health; NOT WAIT FOR DISEASE OR HARM TO HAPPEN IN ORDER TO ACCESS CARE.


The Potential of the Great Lakes Region: Create an Ecosystem that Drives the Intangibles Economy for the Health Sector, a First in the World

LEADERSHIP across Great Lakes jurisdictions: recognize the economic value of the Intangible Economy in the health sector Incentives and investments focused on driving the Intangible Economy in the health sector – balanced investments with discovery Policy environment that enables collaboration across Great Lakes jurisdiction to drive Intangible Economy



Thank You Dr. Anne Snowdon

Academic Chair, WIN and Scientific Director & CEO, SCAN Health Anne.Snowdon@uwindsor.ca

Find us online at: www.scanhealth.ca OR www.worldhealthinnovationnetwork.com Follow us on Twitter: @SCAN_Health OR @WIN_Health Like us on Facebook: Supply Chain Advancement Network in Health OR World Health Innovation Network Follow us on LinkedIn: Supply Chain Advancement Network in Health OR World Health Innovation Network Subscribe to us on YouTube: WIN Health