Innovation for future healthcare and wellbeing VINNOVA Annual Conference 12 October 2011

Elettra Ronchi OECD Senior Policy Analyst

Talking Points

1. The OECDOECD at 50+ 2. Ageing: The Implications-Data

and Trends3. Integrating the ageing

challenge in innovation activities - A few lessons learned

1-OECD at 50+: How’s Life?Better Policies for Better Lives

Beyond GDP: Multiple Dimensions of Progress

New Perspectives/New MeasuresNew Knowledge

A Broader Vision of Progress

From focus on economic growth

2.Ageing: The Implications-Data and Trends

Convergence in the old age dependency ratio across the OECD (1950-2050)

Significant financing implications .

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France Germany EU27 ItalyKingdom

TurkeyJapan KoreaStates

Canada Australia Mexico

Pension

Health

Long-term care

Expenditure (% of GDP)

2010 2050

United United

Fiscal costs of ageing populations(Projected pension, health and long-term care expenditures, 2010 and 2050, per cent of GDP)

Source: OECD (2011), Pensions at a Glance; OECD (2011), Help Wanted? Providing and Paying for Long-Term Care; European Commission (2009), “The 2009 Ageing Report; International Monetary Fund (2009), “Fiscal Implications of the Global Economic and Financial Crisis”; Standard & Poor’s (2010), “Global Aging 2010: An Irreversible Truth”.

Steep rise in the share of 80+ years old

Source: OECD Labour and Demographic database

80+ people are the main users of Long Term Care

Source: Health Data 2010 and additional Australian and Swedish data

Long-term care is predominantly funded from public sources

Older people are important to the market and the economy

Average household disposable income of each age group relative to that of people aged 41 to 50, mid-1980s and mid-2000s- Income of the elderly has continued to rise.

Between 18 and 25 Between 66 and 75

The situation has improved in the recent times (from mid- 1980s to mid1990s, but slow progress afterwards.

• 3. Integrating the ageing challenge in innovation activities - A few lessons learned

1-Seize the opportunities of Information Technology

Cellular mobile subscriptions per 100 inhabitants, 2009, 2G and 3G

A recent trend in the use of mobile broadband networks :firms that are not direct network providers use wireless network connectivity to provide new services.

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Innovation Stories: Japan’s Raku Raku- NTT DoCoMo Life Assist Services –A profitable market

23年 4月 10日

Main Reasons for Purchase Raku Raku Phone Cumulative Sales Thousands of Units (1999-2008)

2- Seize the Opportunities of Demand-Side Innovation Policies

• The aim of the project is to enable elderly people to live at home for as long as possible and to provide a better and more user-friendly set of services.

• The E-Kotitori project has resulted in an integrated home service system based on IT .

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Innovation Stories: E-Kotitori Service Integrator

23年 4月 10日

ELDERLY AND THEIR RELATIVES AS PURCHASERS

CITY OF TAMPERE

“HOMEMARKET” SERVICE INTEGRATOR

CARE PROVIDERS

Homemarket Platform Developers and Project Members

Service providers –partners:

Medivire Hoiva Oy -services for elderly services for elderly

Koskiklinikka –Tampereen Lääkärikeskus Oy -medical services

MediNeuvo Oy –”call center” –health

Mawell Oy –software platforms

MedOne Oy –”Manpower –health professionals”

Pirkanmaan Osuuskauppa –home services

TeliaSonera Finland Oyj-national Telco

YIT Oyj –construction company

Daxtum Oy –ICT services Suomen Terveystalo Oyj–

health care service company

3- Seize the opportunities ofSocial and User-driven Innovation

• Innovation to address social exclusion has a public good nature, leading to under-investment by the market whilst the social welfare state is increasingly reducing its response, especially in the context of fiscal consolidation.

• The Korean Silvernet is an example of how social innovation supported by public sector and new technologies can provide innovative solutions with potentially important quality of life/social gains.

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Innovation Stories: Silvernet in Korea

23年 4月 10日

Bridge Between Old and Young

Pride in Community involvement

Past Experience Transfer

PAST NOW

A Shared Strategy: PartnerA Shared Strategy: Partner to Deliver Innovation

Public- Private Partnerships

Social Innovation

Corporate social responsibility

Private Sector

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Conclusions• A pessimistic view on population aging foresees a loss

of productivity and innovative potential as well as an excessive burden resulting from pension and health costs.

• This view will hold true if population aging is not matched by consistent policies to promote entrepreneurial, societal, and individual action.

• Mobilizing innovation for ageing calls for innovative solutions at all levels, including organizational and social innovation and from local to national level.

• A 21st Century system of silver services must be based on new concepts and designs of policies, programs, and organizations

THANK YOU

elettra.ronchi@oecd.org

careprofs

Leisure

Tele-carer

Care response service

Emergency services

Care providers

Home Hub Appliance

Elderly living independently

Records

•Social Care

•Housing

•Personal Health Record

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Tel

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Cholesterol monitor

Blood-pressure cuff

Pedometer

Glucose meter

Sensor networks

Medication tracking

LightsDoors / WindowsMotion / ActivityBed KitchenBathroom

Service Hub

A SMARTER HEALTH AND WELLNESS FUTURE

COLLABORATION INVOLVES ALL TYPES OF FIRMS

Collaboration on innovation, 2004-06As a percentage of innovative firms by R&D status

Source: OECD (2010), Measuring Innovation: A New Perspective , OECD, Paris based on OECD Innovation microdata project.

NEW INDICATORS reveal that collaboration is used in innovation whether firms perform a lot of R&D, a little R&D or no R&D at all. Policies that stimulate collaboration and network initiatives will have an impact on the entire spectrum of innovative firms.

refinement transformation

Source: Adapted from the “Transformometer”

(Prof Peter Kawalek- University of Manchester)

The Challenge…Transformative Innovation

Raku Raku Phone Smarter Health and Wellness System