Application of Public-Private Partnership Mechanisms to Ensure Innovative Development of the Healthcare Sector

Abstract

INTRODUCTION. The pursuit of technological sovereignty in the current geopolitical situation has led to a growing emphasis on studying relations in the field of government support for healthcare innovation, in particular, the institute of public–private partnership (PPP). In the face of the challenges presented by sanctions, the economic crisis, and a potential deficit in sustainably competitive national innovative medical products, the Russian government is confronted with the necessity of financing the development and production of innovative medical products, including through involving private partners (investors). The use of PPP mechanisms is essential for the achievement of technological sovereignty. In addition to attracting private capital and competences, PPP mechanisms can significantly accelerate the development, realisation, and introduction of innovative medical products, improve the quality of medical care, and increase the production of medicines and medical devices.AIM. This study aimed to analyse existing PPP mechanisms for the development of the Russian healthcare, science, and technology sectors within the framework of state–business relations and to identify optimal models for the development, realisation, introduction, and production of innovative medical products.MATERIALS AND METHODS. The study analysed Russian federal legislation using an information-based analytical approach to identify the most promising mechanisms for innovative development in healthcare, with a focus on PPP models.RESULTS. The article considers frequently encountered forms of possible government involvement in and support of innovative healthcare development with the aim of increasing efficiency and scaling up the realisation and introduction of innovative medical products. Additional aspects covered include the funding of technological sovereignty projects, the expansion of preferential regimes, and the concept of using PPP models. The article presents various PPP realisation mechanisms, including special investment contracts, concession agreements, and PPP agreements, which allow placing infrastructure facilities under the management of private partners. The transferred facilities may include production facilities, research centres, and other facilities necessary for innovative development. The article pays particular attention to the terms and features of concession agreements in the healthcare sector, considers the distribution of duties and responsibilities between the parties involved, and investigates the use of the risk-based approach. Additionally, the article analyses established business practices to identify conditions that are necessary for the parties to a concession agreement.CONCLUSIONS. The realisation of PPP projects in the innovative development of the healthcare sector requires taking into account and overcoming constraining factors, including technological and administrative barriers that may hinder effective development. The authors believe that the most preferable PPP form is the concession agreement model.

Keywords

• government
• business
• private sector
• investments
• public-private partnership
• concession agreement
• medical product
• innovative projects
• commercialisation
• innovative development of the health care sector
• health care