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By Professor Majbritt Rostgaard Evald, Head of Research and Vice Head of Department in Kolding at the Department of Business and Sustainability

Professor Ann Højbjerg Clarke, Centre for Sustainable Business Development and Policy, Department of Business and Sustainability.

It’s no secret that Denmark’s and Europe’s public sectors are struggling with demographic challenges. As the population ages, demand for elderly care keeps rising. At the same time, forecasts suggest that around 70% of frontline staff in local municipalities will leave the workforce by 2030. That’s a double blow: higher healthcare costs and an even greater shortage of skilled workers in a sector already battling to recruit qualified staff.

Faced with these shifts, Danish municipalities are looking for new ways to work with private firms and other external partners. Public-private innovation partnerships are becoming an essential tool for developing smarter work processes, services and products. That includes new tech for handling medicine, alarm systems, automated documentation and incontinence care – freeing up time for staff to focus on care itself.

Denmark has so far been ahead of the curve in PPI partnerships compared to other EU and Scandinavian countries. There’s experience with exploratory collaborations that develop new tech, innovative procurement that refines and adapts solutions, and strategic alliances aimed at long-term improvements. But there are still big challenges when it comes to integrating different types of partnerships and giving municipalities a wider range of strategic options. Too often, innovative solutions get stuck in one council, instead of being scaled up and used more widely.

To unlock PPI partnerships’ full potential and benefits, it’s time for municipalities to step up. There’s a need for a new generation of partnerships that build strategic knowledge about different collaborations and establish a solid innovation framework to systematise testing, implementation and scaling. This will not only help the public sector tackle demographic challenges more effectively but also allow private companies to develop solutions that create value beyond a single project or partnership.

Aalborg and Haderslev municipalities are paving the way by showing how local authorities can develop strategic knowledge about partnerships and put structured processes in place that benefit residents, municipalities and businesses alike. They’re also at the forefront of tackling the demographic challenges in elderly care by systematically testing and rolling out a robust new innovation infrastructure.

Haderslev Municipality has been one of the first to launch the e-District concept, a specially designed process model developed with the consultancy firm Public Intelligence. The model has three key stages to strengthen the municipality's ability to identify new solutions: 1. Testing and service design involving 1-2% of all citizens; 2. Stabilisation, involving 10-25% of citizens; 3. Full rollout, reaching 100% of citizens. So far, the solutions that have made it through this process have focused on digital tools for elderly care in Haderslev. Examples include medicine reminder apps, automated pill dispensers and video call systems for tablets. These innovations either replace existing services or add something new for residents.

Before solutions are tested, companies are carefully screened. The municipality checks whether solutions can transmit data, be remotely monitored, and where the servers are located. Solutions must align with the municipality’s policies and meet GDPR requirements. If the solution is deemed relevant, the company is invited for testing. Decisions on moving forward or stopping happen at each phase, balancing costs, technical factors and user needs. The model is especially useful for smaller municipalities with tight budgets, helping them invest in innovation while keeping day-to-day operations running smoothly.

Aalborg Municipality takes a broader approach, using its larger budget to invest in a wider range of elderly care solutions. They invest in a broader range of solutions for the elderly through various PPI collaborations that not only benefit Aalborg but can also be scaled up and used by other municipalities. Alongside testing new products with companies, Aalborg is part of strategic alliances with other municipalities and organisations like CO-PI and DLSC. These alliances include the North Jutland Welfare Technology Network, which drives innovation across the region, and the 6-City Network, where larger Danish municipalities share insights and ensure political backing for PPI initiatives. Aalborg Municipality is part of the various partnerships to ensure the supply of relevant knowledge and facilitate navigation in a portfolio of collaborations and solutions.

One new move from Aalborg is the introduction of digital bridge builders among staff in elderly care. These are staff with a knack for tech who act as role models, helping colleagues get comfortable with new digital tools and use them effectively. Experience shows that there’s a need for these bridge builders, and that they embrace the responsibility and thrive in the role.

Other Danish municipalities can take some lessons from Aalborg and Haderslev: 

• Understand the benefits of different PPI partnership types to build a strategic overview and remain flexible.

• Develop guidelines and processes that enable multiple municipalities to coordinate efforts, without making local infrastructure too rigid.

• Organise systematic test programmes to enhance learning, maintain local engagement and inform decisions on implementation and scaling.

Up to now, Danish municipalities have often focused on isolated aspects of PPI, such as specific partnership types, projects and solutions. But this fragmented approach misses the chance to create synergies and learn from a comprehensive and systematic integration of different types of partnerships, projects, testing, implementing and scaling. It also overlooks the benefits of testing multiple solutions in the same sector. By bringing these elements together, Danish municipalities can rethink their approach to PPI and kickstart a new generation of partnerships. That means a more strategic, systematic way of working that benefits municipalities, residents and businesses alike.

The Danish version of this article was published in Jysk Fynske Mediers Erhverv+ on Thursday 10 October 2024