IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i7p1948-d219169.html
   My bibliography  Save this article

What Are the Features of Successful Medical Device Start-Ups? Evidence from KOREA

Author

Listed:
  • Munjae Lee

    () (Department of Medical Device Management and Research, SAIHST, Sungkyunkwan University, Seoul 06351, Korea)

  • Sewon Park

    () (Department of Medical Device Management and Research, SAIHST, Sungkyunkwan University, Seoul 06351, Korea)

  • Kyu-Sung Lee

    () (Department of Medical Device Management and Research, SAIHST, Sungkyunkwan University, Seoul 06351, Korea
    Department of Urology, Samsung Medical Center, Sungkyunkwan University School of Medicine, Seoul 06351, Korea)

Abstract

This study analyzes the factors determining the success of medical device start-ups, focusing on the healthcare sector as the starting point of the Fourth Industrial Revolution. The government is also working to establish a business model to revitalize medical device start-ups as a new driving force for the economy. Accordingly, such start-ups based on innovative technologies have been actively developed, but it seems that there is a limit to growth. We employed an analytical hierarchy process to derive an activation strategy for medical device start-ups. A survey was administered to experts in such start-ups, including medical device companies and venture capital firms, prospective start-up entrepreneurs, medical device developers, and professors. A total of 18 responses were obtained for analysis. The results revealed the following priorities for the success of medical device start-ups: technical skills, marketability, entrepreneurial capacity, and funding. In addition, medical device and venture capital firms were divided into separate groups and compared and analyzed. Technical skills are considered a priority for those in the medical industry. However, entrepreneurial skills are a priority for venture capitalists. Based on these results, we suggest measures for the success of medical device start-ups.

Suggested Citation

  • Munjae Lee & Sewon Park & Kyu-Sung Lee, 2019. "What Are the Features of Successful Medical Device Start-Ups? Evidence from KOREA," Sustainability, MDPI, Open Access Journal, vol. 11(7), pages 1-17, April.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:1948-:d:219169
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/7/1948/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/11/7/1948/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Fabio Pammolli & Massimo Riccaboni & Laura Magazzini, 2012. "The sustainability of European health care systems: beyond income and aging," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(5), pages 623-634, October.
    2. Boyoung Kim & Hyojin Kim & Youngok Jeon, 2018. "Critical Success Factors of a Design Startup Business," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-15, August.
    3. Sandberg, William R. & Hofer, Charles W., 1987. "Improving new venture performance: The role of strategy, industry structure, and the entrepreneur," Journal of Business Venturing, Elsevier, vol. 2(1), pages 5-28.
    4. Marco Gelderen & Roy Thurik & Niels Bosma, 2006. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, vol. 26(4), pages 319-335, May.
    5. César Álvarez Pérez & Vicente Rodríguez Montequín & Francisco Ortega Fernández & Joaquín Villanueva Balsera, 2017. "Integrating Analytic Hierarchy Process (AHP) and Balanced Scorecard (BSC) Framework for Sustainable Business in a Software Factory in the Financial Sector," Sustainability, MDPI, Open Access Journal, vol. 9(4), pages 1-16, March.
    6. Hyytinen, Ari & Pajarinen, Mika & Rouvinen, Petri, 2015. "Does innovativeness reduce startup survival rates?," Journal of Business Venturing, Elsevier, vol. 30(4), pages 564-581.
    7. Schwienbacher, Armin, 2013. "The entrepreneur's investor choice: The impact on later-stage firm development," Journal of Business Venturing, Elsevier, vol. 28(4), pages 528-545.
    8. Sung-Ho Kil & Dong Kun Lee & Jun-Hyun Kim & Ming-Han Li & Galen Newman, 2016. "Utilizing the Analytic Hierarchy Process to Establish Weighted Values for Evaluating the Stability of Slope Revegetation based on Hydroseeding Applications in South Korea," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-17, January.
    9. Kohler, Thomas, 2016. "Corporate accelerators: Building bridges between corporations and startups," Business Horizons, Elsevier, vol. 59(3), pages 347-357.
    10. Stuart, Robert & Abetti, Pier A., 1987. "Start-up ventures: Towards the prediction of initial success," Journal of Business Venturing, Elsevier, vol. 2(3), pages 215-230.
    11. repec:gam:jsusta:v:8:y:2016:i:1:p:58:d:61917 is not listed on IDEAS
    12. repec:gam:jsusta:v:8:y:2016:i:1:p:-:d:61917 is not listed on IDEAS
    13. Ana Tur-Porcar & Norat Roig-Tierno & Anna Llorca Mestre, 2018. "Factors Affecting Entrepreneurship and Business Sustainability," Sustainability, MDPI, Open Access Journal, vol. 10(2), pages 1-12, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cosmina Lelia Voinea & Marcel Logger & Fawad Rauf & Nadine Roijakkers, 2019. "Drivers for Sustainable Business Models in Start-Ups: Multiple Case Studies," Sustainability, MDPI, Open Access Journal, vol. 11(24), pages 1-25, December.
    2. Petra Marešová & Lukáš Peter & Jan Honegr & Lukáš Režný & Marek Penhaker & Martin Augustýnek & Hana Mohelská & Blanka Klímová & Kamil Kuča, 2020. "Complexity Stage Model of the Medical Device Development Based on Economic Evaluation—MedDee," Sustainability, MDPI, Open Access Journal, vol. 12(5), pages 1-27, February.

    More about this item

    Keywords

    medical device industry; medical device start-ups; start-ups; success factor; Korea; analytical hierarchy process;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:1948-:d:219169. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.