Investigating Business Strategies for the Biotechnology, Medical Device, and Healthcare Sectors to Manage Uncertainty
Authors:-Atharva Prasad Jakhadi
Abstract-The medical devices, biotechnology, and healthcare industries thrive on innovation, necessitating substantial investment in research and development (R&D) and the introduction of new products. These innovation activities, while essential, come with high costs and the complexities of commercialization. Thus, effective business models (BMs) that align with such innovation activities are vital. This study explores the intricacies of BMs within innovator companies in the health-tech sector, highlighting the critical role these models play in managing uncertainties and promoting innovation. A systematic literature review was conducted, analyzing 34 recent papers to synthesize knowledge on BMs in health-tech companies and compare models across dimensions such as infrastructure, offerings, customers, and finances. This review identified 9 key BMs: open innovation, sustainable, dynamic, dual, spin-off, frugal, high-tech entrepreneurial content marketing, backend, and product-service systems BMs. It was found that open innovation, sustainability, and dynamicity are foundational models that can serve as a basis when combined with others. The study presents a Dynamic Sustainable Business Model (DSBM) for Health-Tech, tailored to integrate adaptability and sustainability, offering a framework for leveraging emerging technologies effectively. Additionally, a conceptual framework of 28 groups of uncertainty factors in BMs was developed to aid risk management in health-tech. These findings provide crucial insights for health-tech companies, assisting them in managing innovation and value creation in a rapidly evolving landscape.
