New Medical Devices Invention, Development, and Use (1988) / Chapter Skim
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Private Investment in Medical Device Innovation
Private Investment in Medical Device Innovation
Pages 62-72
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From page 62... ...
To date, business investment decisions have reflected an optimism about the rich technological opportunities for developing new products and the attractive sales potential in an apparently expanding market. But are changes in the economic, legal, or regulatory environment likely to destroy the incentives for business investment?
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From page 63... ...
TECHNICAL FACTORS Technical factors determine the ease with which an innovation can be developed and brought to the market. There are two key technical factors that distinguish development efforts in the medical devices industry.
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From page 64... ...
This sensor was invented by a research team at Oxford University, developed into a prototype model at Cranfield Institute of Technology, and then brought to commercial quality by Genetics International, Inc., which had funded the academic work. Any stimulative effects of a strong research base will be influenced by the ease with which the base is tapped.
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From page 65... ...
Smaller and shorter-term projects will also be preferred because of a desire to avoid the uncertainty inherent in long-term projects. Regulatory pressure may indirectly affect innovation by altering the internal structure of the medical devices industry.
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From page 66... ...
Certainly, the market for medical devices looks attractive. If one hired some of the major business consulting firms to gauge market attractiveness using portfolio models, the industry would probably score highly (Porter, 19851.
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From page 67... ...
Large firms seeking to expand into new market segments, entrepreneurs with a good idea, and foreign firms eyeing the vast U.S. health care market will all be there.
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From page 68... ...
To the extent that health care treatment modalities and equipment are location-specific, their ability to attract investment will change accordingly. In the case of kidney dialysis, reimbursement changes have supported continuous ambulatory peritoneal dialysis, a home-based procedure, and have led to increased research and development on devices associated with that form of treatment (Romeo, 19841.
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From page 69... ...
For example, the decision to fund the end-stage renal disease program stimulated considerable research in dialysis equipment (Romeo, 19841. But, as suggested earlier, there is no assurance that market or government signals in health care accurately reflect social values or that they will stimulate a balanced mix of investments.
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From page 70... ...
1982. The effects of prospective reimbursement programme on hospital adoption and service sharing.
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1982. Cost of Compliance with Good Manufacturing Practices Regulations by the Medical Devices Industry.
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From page 72... ...
1984. Federal Policies and the Medical Devices Industry.
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