Medical Device Outsourced R&D - A Disruptive Innovation (for OrthoStreams, by David Skinlo, Marker Medical www.markermedical.com)
Clayton Christensen coined the term Disruptive Innovation to describe a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
As we look at the medical device industry; it is clear that the pace of new technology has slowed. One major factor is, in part, due to the way new products are brought to market – in years past, surgeons and inventors who had ideas for new medical products simply reached out to large medical device companies to develop their product ideas. This business arrangement was often in the form of licensing deals or outright technology purchases. These deals were a well-spring of many of today’s medical technologies. However, in today’s environment with increased regulatory oversight, scrutiny of surgeon and manufacturer relationships, increased competition and a need to introduce new products to market quickly, a new approach – no, a disruptive innovation – is required. One trend that is quickl...
