A Framework to Manage the Innovation Strategies of New Technology Based Firms

Technological innovations are today progressing at a rapidrate with many technologies heralded as major breakthroughs.New technology-based firms (NTBFs) are important drivers ofinnovation and economic growth; however they face hugechallenges in terms of realising the latent economic potentialfrom new innovations in the current economic climate. Openinnovation offers the prospect of lower costs for innovation,faster times to market, and the chance to share risks. Bydeveloping open business models companies can capture themultifaceted ideas of scientists, engineers and end usersallowing beneficial technologies to reach the market morequickly in a way that is evidence focused.This research uses a case based approach to investigate theimplicit and explicit business models used by innovatingcompanies in the connected health arena. Improving thepatient’s quality of life using connected health technologies hasbeen identified as a strategic priority of large companies andgovernment organizations in the current environment. In thiscontext connected health can be described as the utilization of“connecting” technologies (communication systems –broadband, wireless, mobile phone, fixed phone lines) andmedical devices for healthcare applications. There is a need tobetter understand how innovations are managed withintechnology based healthcare companies, developed, nurturedand brought to the patient. This paper explores the application ofan innovative open business model approach [1, 2] to 5companies involved the research & development or delivery ofconnected health solutions in Ireland.The results have shown that there is an emerging typology ofNTBFs that is dependent on the technology and customer focusand on the background of the ‘innovation leaders’ within eachorganization. The work has highlighted the challenges to successfor NTBFs and develops the open innovation strategic solutionsthat can enable them to remain competitive in the future.