Abstract
It is assumed that a company will only developa new medical technology if it has evidence that it willprovide returns that are greater than the investmentrequired to develop that technology and bring it to themarket. The price that can be commanded for the newproducts and the volumes of the products that are solddetermine, in large measure the returns that will be madeon the initial investment. Estimating the sales volumesand prices of products are critical factors in decisionmaking during product development. Once in the marketprices are not static. Rather they are affected by a rangeof factors. This paper considers the effect that marketexperience, represented by cumulative volume of sales,has on prices. How quickly the price declines in responseto experience is dependent on a number of factors. Howprice trends from products already in the market can beused to inform investment decisions of new products andtechnologies is described.
Original language | English |
---|---|
Title of host publication | Unknown Host Publication |
Pages | 5156-5159 |
Number of pages | 4 |
Publication status | Published (in print/issue) - 23 Aug 2007 |
Event | 29th Annual International Conference of the IEEE Engineering in Medicine and Biology Society - Lyon, France Duration: 23 Aug 2007 → … |
Conference
Conference | 29th Annual International Conference of the IEEE Engineering in Medicine and Biology Society |
---|---|
Period | 23/08/07 → … |
Bibliographical note
Reference text: [1] B. D. Henderson. (1974, The experience curve - reviewed V. price stability.[2] Day, G. S, Montgomery and D. B, "Diagnosing the Experience Curve," Journal of Marketing, vol. 47, pp. 44, Spring. 1983
[3] A. Brown, B. J. Meenan and T. P. Young, "Marketing Innovation: Medical Device Prices Follow the Experience Curve," Journal of Medical Marketing, vol 7 (3), pp203 - 212, 2007..
[4] J. S. Kilby, “Invention of the Integrated Circuit,” IEEE Transactions on Electron Devices, vol ed-23, no 7, pp 648 – 654, 1976.
[5] A. J. Girling, G. Freeman, J. Gordon, P. Poole-Wilson, D. A. Scott and R. J. Lilford, "Modelling payback from research into the efficacy of left ventricular devices as destination therapy. ," International Journal of Technology Assessment in Health Care, vol. 23, 2007.
[6] B. D. Henderson, "The application and misapplication of the experience curve," Journal of Business Strategy, vol. 4, pp. 3-9, 1984..
[7] R. N. Dino, "Forecasting the Price Evolution of New Electronic Products," Journal of Forecasting (Pre-1986), vol. 4, pp. 39, Jan-Mar. 1985.
[8] M. B. Lieberman, "The Learning Curve and Pricing in the Chemical Processing Industries," The Rand Journal of Economics, vol. 15, pp. 213, Summer. 1984. 5159