Sustainable Business Model Innovation in Personalized Medicine

Abstract:     
Personalized medicine is considered to be one of the most significant innovations in the pharmaceutical and life sciences industry. It is attributed with the potential to considerably improve the provision of health care, and to contribute significantly to economic growth. In order to be able to realize these opportunities the industry needs to undergo a deep change, as previous products and services have targeted large rather than small, specific patient groups. Moreover, firms have to provide products with accompanying services instead of mere products. As hardly any firm holds all the expertise, they have to rely on inter-organizational business models. This paper addresses this issue by providing a model for designing inter-organizational business models. It provides a framework for firms with complex customer structures, and provides protection mechanisms in order to achieve sustainable competitive business models, even in complex business collaborations.

Number of Pages in PDF File: 11

Keywords: Business model innovation, Inter-organizational business models, IP-Strategy, Networked business models, Personalized medicine, Pharmaceutical industry, Product-service-systems

JEL Classification: I2, L2, L65, M10, M11, M19, O3

Accepted Paper Series