The impact of M&As on company innovation: evidence from the US medical device industry

This study addresses aspects of governmental influence on innovation by analyzing the impact of the ObamaCare excise tax on the medical device industry. We initially give an overview of common approaches to measuring innovativeness and entrepreneurship, empirically assess whether existing metrics are suitable for investigating the innovation performance of the U.S. medical device industry, and define a new measure (firm innovation activity) for entrepreneurship. Then we perform a quantitative analysis to explore the impact of the tax. We analyze more than 60,000 product clearances from 1996 to 2013, using the FDA database. We find a significant relationship between product counts and revenues for one segment. Contrary to the present criticism of the excise tax, we find hardly any noteworthy response in either firm innovation activity or number of products launched in the year after the tax was introduced. The 2013 reduction of new product submissions is well within the limits of typical annual fluctuations observed in previous years. This provides a first indication that the excise tax act did not have a strong impact on innovative activities through the present.

Download Full-text

What Is Important for the Growth of Latecomers in the Medical Device Industry?

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc7010013 ◽

2021 ◽

Vol 7 (1) ◽

pp. 13

Author(s):

Kyungtae Yeom ◽

Changhyeon Song ◽

Kwangsoo Shin ◽

Ho Seon Choi

Keyword(s):

Medical Device ◽

Value Added ◽

Growth Strategy ◽

Future Research ◽

Growth Stages ◽

Medical Device Industry ◽

Medical Device Manufacturers ◽

Negative Effect ◽

The Impact ◽

Device Industry

In the medical device industry, which is highly value-added and requires multidisciplinary knowledge, major global firms dominate the market, so it is necessary to establish a growth strategy suitable for latecomers. Through a Korean case, it was confirmed that import, diversification, and R&D activity are distinguishing strategies. The existing literature covers these strategies, but these findings are fragmented and differ from those of latecomers. This study examined the impact of the above factors on corporate growth, based on data of 440 Korean medical device manufacturers from 2011 to 2016. According to the results of panel data regression, diversification and R&D activity have a positive effect on the financial performance of a firm, while the import business model shows a negative effect. These results are expected to provide implications with respect to strategies for the growth of latecomers in the medical device industry. In future research, it is necessary to investigate how detailed strategies in accordance with the growth stages of a firm can be established.

Download Full-text

The competitiveness study of Korea Medical Device Industry in China

International Commerce and Information Review ◽

10.15798/kaici.17.3.201509.93 ◽

2015 ◽

Vol 17 (3) ◽

pp. 93-114 ◽

Cited By ~ 2

Author(s):

이유아 ◽

정윤세

Keyword(s):

Medical Device ◽

Medical Device Industry ◽

Device Industry

Download Full-text

The Bioengineering Design Forum

Industry and Higher Education ◽

10.1177/095042229701100209 ◽

1997 ◽

Vol 11 (2) ◽

pp. 116-119 ◽

Cited By ~ 1

Author(s):

Patrick J. Prendergast

Keyword(s):

Medical Device ◽

Medical Devices ◽

Medical Device Industry ◽

Industry Collaboration ◽

University Industry ◽

Device Industry

The author assesses the results of the Bioengineering Design Forum – a collaboration between university researchers, clinicians and industry in Ireland. The aim of the Forum is to initiate, develop and bring to a successful conclusion R&D collaborations that lead to new or improved medical devices. By laying down certain operating procedures for the Forum, an effective ‘meeting ground’ has been developed which serves the objectives of both university engineering departments and the medical device industry in a unique way. The purpose of this paper is to relate our experiences of the Forum; they may be useful to others who would like to attempt similar initiatives in other fields. The author also describes the results that may be expected from this kind of university–industry collaboration in practice.

Download Full-text