A Comparison Analysis between Manufacturing & Service Approaches in the Medical Device Industry

Abstract

Medical device industry is an industry with obviously interdisciplinary characteristics and suitable for manufacturing and service approaches study. A manufacturing approach of industrial portfolio model, and a service approach of HS (innovation intensive service) platform model are used as analytical tools for industrial innovation. From the perspective of manufacturing side, an industry portfolio has been conducted and it consists of two dimensions industrial value chain and technology life cycle. On the other side, the LIS platform has been considered with innovation strategies, externalities and value activities. This research focuses on the industry level of policy making for medical device industry development in oncoming years of Taiwan. The result reveals that the industrial innovation requirements of "Market Information", "Management Skills" and "Financial Resources" should be emphasized for Taiwan's medical device manufacturing. This research also indicates that "connectivity", "receiver competence" and "Nature of Knowledge and Spillover Mechanisms" in the dimension of technological system will he essential; meanwhile, "Factor Conditions", "Demand Conditions" and "Firm Strategy, Structure, and Rivalry" in the dimension of industrial environment arc indispensable. Not only does the conclusion provide a mechanistic comparison of manufacturing and service approaches, it also allows strategic suggestion of resource allocation for medical device industrial development.