Abstract

Health service managers and industry face significant challenges in implementingand delivering innovations for healthcare; shrinking budgets mean there is a need tounderstand more clearly the value of innovations. An articulation of the value proposition, that is the value created for users by technology is the key starting point for current thinking on open and innovative business models.The aim of this research is to develop a framework for ‘valuing’ a new medical device atthe concept stage that balances benefi t to the healthcare provider against commercial costs.This paper proposes that appropriate evidence-gathering activities such as determinationof the clinical value proposition and early health economic tools such as the ‘headroommethod’ can be utilised as part of the development process to contribute to the early stageestimates of value benefi cial to both the health service and industry decision makers.