Medtech Companies Must Innovate, According to PwC’s Health Research Institute
According to PwC’s Health Research Institute (HRI) new report, Medtech companies prepare for an innovation makeover, med tech companies may be losing their competitive edge and are in need of a different approach to innovation in a new outcome-based health economy.
The report includes a web-based interactive innovation scorecard to assess medtech companies based on leading innovation practices. Only 14 percent of medtech executives say that they formally manage innovation activities, which is essential to creating new services and business models.
Just 17 percent of med tech executives believe their companies are innovation pioneers. The PwC’s Health Research Institute report outlines how medtech companies need to expand their approaches to innovation outside traditional R&D to remain competitive.
“Historically, medtech innovation has relied on incremental improvement,” said Christopher Wasden, managing director and global healthcare innovation leader, PwC. “But ‘innovation’ needs redefining for an environment that rewards value – measured in affordable patient outcomes and customer satisfaction – over volume. True innovators learn from failure – fast, frequent, frugal failure. Medtech leaders need to change their business models, their corporate DNA, to embrace lean innovation beyond their core operations.”