High Science: A Best-Practice Formula for Driving Innovation
Executive Summary
The Boston Consulting Group reveals results of a study on how medical technology firms can cultivate and manage their R&D to boost revenue, profits, and even and stock valuations.
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High Science 2010: Rising To The Challenge Of Driving Medtech Innovation In Turbulent Times
Medtech R&D productivity is being undermined by a range of deep-seated changes in the health care industry. Companies that underestimate this challenge face the prospect of lackluster growth over the long term. But in sharp contrast, Boston Consulting Group has identified a set of "High Science" device companies that are making a concerted effort to reinvent their approach to R&D and gain a competitive edge.
Payback II: Medical Devices Ride the Cash Curve
The medical device industry has generated returns over the past decade that exceed pharmaceuticals and many other sectors. These returns have been driven by payback on innovation, which the authors from the Boston Consulting Group define as generating cash returns from innovation. Device executives, on the other hand, have generated payback by deftly managing the four S-Factors: start-up costs, speed-to-market, support costs, and scale operations. The challenge for device companies will be maintaining these returns in the face of increased investment in this sector and the threat of health care spending constraints.
Payback II: Medical Devices Ride the Cash Curve
The medical device industry has generated returns over the past decade that exceed pharmaceuticals and many other sectors. These returns have been driven by payback on innovation, which the authors from the Boston Consulting Group define as generating cash returns from innovation. Device executives, on the other hand, have generated payback by deftly managing the four S-Factors: start-up costs, speed-to-market, support costs, and scale operations. The challenge for device companies will be maintaining these returns in the face of increased investment in this sector and the threat of health care spending constraints.