People do respond to incentives

I had a fantastic discussion today regarding who should be the owner of an idea originated inside a hospital. The physician, the institution, both?

It is clear to me that when a physician is hired to do research, the output of this research should belong to the hospital, and the hospital should acknowledge his/her contribution by giving away part of the benefits obtained from it. In this case, the new idea would probably have been unthinkable outside the premises of the hospital, without its infrastructure and assets, so it makes sense.

But what happens if a physician has an idea, let’s say, related to his/her field of experience but not necessarily linked to research? Let’s see an example, if a surgeon perceives a need and thinks about a solution to this need while operating a patient, let’s say a new medical device, should the idea belong to the hospital in one way or another? Well, yes, the idea came to him because he was working at the hospital, but can the hospital claim any ownership over it?

When arguing the relevant role the hospital had in generating the idea, the hospital director may well get from the physician the question “when did I had the idea, from 0800 AM to 1700 PM, or from 1700 PM to 2100 PM? (meaning at their private practices, for example). On the other hand, if the hospital invests in promoting physicians and improving their talents, shouldn't it capture part of the value as well?

Who is the owner of the idea, then? It may seem a futile discussion, but to me it represents the most important barrier to innovation in our healthcare systems, so it is far from trivial. Sometimes physicians don’t engage in innovation because they perceive the ownership issue as unfair. If we want to foster innovation in healthcare, this question needs to have a clear answer. At the end of the day, it all goes down to how the hospital sees healthcare professionals: Do MDs work for the hospital, or do they work at the hospital?

Are hospitals really willing to encourage innovation and intrapreneurship inside their premises? Are hospitals willing to create a culture of reward for those entrepreneurs? There is a lot to be gained here: if the hospital succeeds in fostering innovation, it can create a great environment to attract talent, lead, and generate economic value and social impact.

People do respond to incentives. That’s something I learned very early when dealing with innovators and entrepreneurs. Innovation should not trigger a war between the hospital and the physician. It should always be a win-win scenario where both parties can create a lot of value if they cooperate. So, in my opinion this is not about claiming ownership, but about both parties acknowledging how far can they go and how better will they be if they work together, and share the ownership. That’s the answer that makes sense to me.