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Published online by Cambridge University Press: 24 February 2020
Product innovation is the central strategic challenge in the healthcare value chain. Companies in each of the sectors covered in this volume – pharmaceuticals, biotechnology, medical devices, and information technology – compete largely on their rate of innovation and the innovativeness of the new products they make. Start-up companies live and die based on their ability to develop new products and therapies that meet needs not satisfied by larger incumbents. This chapter examines the similarities and differences across these sectors, the commonalities they all face in the innovation process, the basis for the imperative to develop new technologies, and the common challenges facing firms in these sectors. Finally, the chapter explains why everyone studying the healthcare industry needs to know more about these technology-based sectors and their impact upon the rest of the healthcare industry and the economy.
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