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Digital Double Diamond (DiDD) Model Analysis of National Competitiveness Under Digital Transformation: An Application to Healthcare and Pharmaceutical Industries in South Korea and Switzerland

Author

Listed:
  • YongChan Kim

    (The Institute for Industrial Policy Studies (IPS))

  • Erdal Atukeren

    (BSL Business School Lausanne)

  • Yeon W. Lee

    (BKL, BAE, KIM & LEE LLC)

Abstract

The healthcare and pharmaceutical industries are rapidly changing under the digital transformation environment in the 2020s. Investments in this field are given priority, both at the business level and also at the national level, to enhance national competitiveness. However, a very limited number of studies examine the impact of digital transformation on the broader scope of the industry and national competitiveness. Furthermore, the existing studies and competitiveness indices focus rather on general country-level innovation indicators. To mend this gap and to provide a more specific framework to evaluate digital transformation in the healthcare and pharmaceutical industries, this study proposes a new model called the Digital Double Diamond (DiDD), which is an extension of Porter’s Diamond model for national competitiveness. The DiDD model consists of three factors: endogenous factor, centric factor, and exogenous factor containing nine variables and 36 sub-variables that capture the impact of digital transformation in healthcare and pharmaceutical industries to assess national competitiveness. The new DiDD model emphasizes the importance of having a balance between the traditional national competitiveness and digital convergence elements in the healthcare and pharmaceutical industries. As an illustration of the new DiDD model, we compare South Korea and Switzerland’s digital transformation competitiveness in the healthcare and pharmaceutical industries.

Suggested Citation

  • YongChan Kim & Erdal Atukeren & Yeon W. Lee, 2023. "Digital Double Diamond (DiDD) Model Analysis of National Competitiveness Under Digital Transformation: An Application to Healthcare and Pharmaceutical Industries in South Korea and Switzerland," International Journal of Global Business and Competitiveness, Springer, vol. 18(1), pages 1-18, December.
    • Handle: RePEc:spr:ijogbc:v:18:y:2023:i:1:d:10.1007_s42943-023-00080-4
    DOI: 10.1007/s42943-023-00080-4
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    References listed on IDEAS

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    1. Vlados, Charis, 2019. "Porter’s Diamond Approaches and the Competitiveness Web," DUTH Research Papers in Economics 20-2019, Democritus University of Thrace, Department of Economics.
    2. Chang Moon, H. & Rugman, Alan M. & Verbeke, Alain, 1998. "A generalized double diamond approach to the global competitiveness of Korea and Singapore," International Business Review, Elsevier, vol. 7(2), pages 135-150, April.
    3. Kraus, Sascha & Schiavone, Francesco & Pluzhnikova, Anna & Invernizzi, Anna Chiara, 2021. "Digital transformation in healthcare: Analyzing the current state-of-research," Journal of Business Research, Elsevier, vol. 123(C), pages 557-567.
    4. Hill, John W. & Powell, Phillip, 2009. "The national healthcare crisis: Is eHealth a key solution?," Business Horizons, Elsevier, vol. 52(3), pages 265-277, May.
    5. Ritu Agarwal & Guodong (Gordon) Gao & Catherine DesRoches & Ashish K. Jha, 2010. "Research Commentary ---The Digital Transformation of Healthcare: Current Status and the Road Ahead," Information Systems Research, INFORMS, vol. 21(4), pages 796-809, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Digital Double Diamond (DiDD) model; Healthcare and pharmaceutical industries; Digital transformation; National competitiveness;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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