Abstract

The ability to innovate is increasingly viewed as the single most important factor in developing and sustaining competitive advantage. This is especially true in the complex, multi-faceted, dynamic area of healthcare technology. Healthcare is the largest user of national economic resources. If delivery continues to be provided in a traditional manner then in Europe by 2060 spending on chronic care alone will cost three times the current level of overall spend on healthcare. Improving the patient’s quality of life using connected health technologies has been identified as a strategic priority of large companies and government organisations in the current environment. In this context connected health can be described as the utilisation of “connecting” technologies (communication systems – broadband, wireless, mobile phone, fixed phone lines) and medical devices for healthcare applications. There is a need to better understand how innovations are managed within technology based healthcare companies, developed, nurtured and brought to the patient. This paper explores the application of an innovative open business model approach (Chesbrough, 2006 and Osterwalter 2009) to 5 companies involved the research & development or delivery of connected health solutions in Ireland.It is hypothesised that by using an open business model framework a greater understanding can be elicited of the factors that will enable connected health companies to remain competitive even in times of economic uncertainty.The research shows the emergence of a typology of connected health companies which will be applicable to other organisations involved in the development or distribution of innovative technologies. This paper highlights the challenges to success for connected health companies and outlines the open innovation strategic moves that will enable them to maintain a more profitable position in a future connected healthcare system.