IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i7p1948-d219169.html
   My bibliography  Save this article

What Are the Features of Successful Medical Device Start-Ups? Evidence from KOREA

Author

Listed:
  • Munjae Lee

    (Department of Medical Device Management and Research, SAIHST, Sungkyunkwan University, Seoul 06351, Korea)

  • Sewon Park

    (Department of Medical Device Management and Research, SAIHST, Sungkyunkwan University, Seoul 06351, Korea)

  • Kyu-Sung Lee

    (Department of Medical Device Management and Research, SAIHST, Sungkyunkwan University, Seoul 06351, Korea
    Department of Urology, Samsung Medical Center, Sungkyunkwan University School of Medicine, Seoul 06351, Korea)

Abstract

This study analyzes the factors determining the success of medical device start-ups, focusing on the healthcare sector as the starting point of the Fourth Industrial Revolution. The government is also working to establish a business model to revitalize medical device start-ups as a new driving force for the economy. Accordingly, such start-ups based on innovative technologies have been actively developed, but it seems that there is a limit to growth. We employed an analytical hierarchy process to derive an activation strategy for medical device start-ups. A survey was administered to experts in such start-ups, including medical device companies and venture capital firms, prospective start-up entrepreneurs, medical device developers, and professors. A total of 18 responses were obtained for analysis. The results revealed the following priorities for the success of medical device start-ups: technical skills, marketability, entrepreneurial capacity, and funding. In addition, medical device and venture capital firms were divided into separate groups and compared and analyzed. Technical skills are considered a priority for those in the medical industry. However, entrepreneurial skills are a priority for venture capitalists. Based on these results, we suggest measures for the success of medical device start-ups.

Suggested Citation

  • Munjae Lee & Sewon Park & Kyu-Sung Lee, 2019. "What Are the Features of Successful Medical Device Start-Ups? Evidence from KOREA," Sustainability, MDPI, vol. 11(7), pages 1-17, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:1948-:d:219169
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/7/1948/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/7/1948/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sung-Ho Kil & Dong Kun Lee & Jun-Hyun Kim & Ming-Han Li & Galen Newman, 2016. "Utilizing the Analytic Hierarchy Process to Establish Weighted Values for Evaluating the Stability of Slope Revegetation based on Hydroseeding Applications in South Korea," Sustainability, MDPI, vol. 8(1), pages 1-17, January.
    2. Fabio Pammolli & Massimo Riccaboni & Laura Magazzini, 2012. "The sustainability of European health care systems: beyond income and aging," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(5), pages 623-634, October.
    3. Boyoung Kim & Hyojin Kim & Youngok Jeon, 2018. "Critical Success Factors of a Design Startup Business," Sustainability, MDPI, vol. 10(9), pages 1-15, August.
    4. Kohler, Thomas, 2016. "Corporate accelerators: Building bridges between corporations and startups," Business Horizons, Elsevier, vol. 59(3), pages 347-357.
    5. Sandberg, William R. & Hofer, Charles W., 1987. "Improving new venture performance: The role of strategy, industry structure, and the entrepreneur," Journal of Business Venturing, Elsevier, vol. 2(1), pages 5-28.
    6. A. Heirman & B. Clarysse, 2005. "The imprinting effect of initial resources and market strategy on the early growth path of start-Ups," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/310, Ghent University, Faculty of Economics and Business Administration.
    7. Stuart, Robert & Abetti, Pier A., 1987. "Start-up ventures: Towards the prediction of initial success," Journal of Business Venturing, Elsevier, vol. 2(3), pages 215-230.
    8. Marco Gelderen & Roy Thurik & Niels Bosma, 2006. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, vol. 26(4), pages 319-335, May.
    9. César Álvarez Pérez & Vicente Rodríguez Montequín & Francisco Ortega Fernández & Joaquín Villanueva Balsera, 2017. "Integrating Analytic Hierarchy Process (AHP) and Balanced Scorecard (BSC) Framework for Sustainable Business in a Software Factory in the Financial Sector," Sustainability, MDPI, vol. 9(4), pages 1-16, March.
    10. Nikou, Shahrokh & Mezei, József, 2013. "Evaluation of mobile services and substantial adoption factors with Analytic Hierarchy Process (AHP)," Telecommunications Policy, Elsevier, vol. 37(10), pages 915-929.
    11. Hyytinen, Ari & Pajarinen, Mika & Rouvinen, Petri, 2015. "Does innovativeness reduce startup survival rates?," Journal of Business Venturing, Elsevier, vol. 30(4), pages 564-581.
    12. Schwienbacher, Armin, 2013. "The entrepreneur's investor choice: The impact on later-stage firm development," Journal of Business Venturing, Elsevier, vol. 28(4), pages 528-545.
    13. Ana Tur-Porcar & Norat Roig-Tierno & Anna Llorca Mestre, 2018. "Factors Affecting Entrepreneurship and Business Sustainability," Sustainability, MDPI, vol. 10(2), pages 1-12, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jeong-min Ryu & Sewon Park & Yoonseo Park & Jeongwon Park & Munjae Lee, 2021. "Innovative Culture and Firm Performance of Medical Device Companies: Mediating Effects of Investment in Education and Training," IJERPH, MDPI, vol. 18(17), pages 1-14, August.
    2. Straker, Karla & Peel, Sean & Nusem, Erez & Wrigley, Cara, 2021. "Designing a dangerous unicorn: Lessons from the Theranos case," Business Horizons, Elsevier, vol. 64(4), pages 525-536.
    3. Cosmina Lelia Voinea & Marcel Logger & Fawad Rauf & Nadine Roijakkers, 2019. "Drivers for Sustainable Business Models in Start-Ups: Multiple Case Studies," Sustainability, MDPI, vol. 11(24), pages 1-25, December.
    4. FUKUGAWA Nobuya, 2022. "Effects of the Quality of Science and Innovation on Venture Finance: Evidence from University Spinoffs in Japan," Discussion papers 22006, Research Institute of Economy, Trade and Industry (RIETI).
    5. Petra Marešová & Lukáš Peter & Jan Honegr & Lukáš Režný & Marek Penhaker & Martin Augustýnek & Hana Mohelská & Blanka Klímová & Kamil Kuča, 2020. "Complexity Stage Model of the Medical Device Development Based on Economic Evaluation—MedDee," Sustainability, MDPI, vol. 12(5), pages 1-27, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abhishek Kumbhat & Sushil, 2022. "Interactive Effect of Success Factors for High-Tech Startups: Value Propositions, Target Market and Operational Excellence," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 73-88, June.
    2. Man, Thomas W. Y. & Lau, Theresa & Chan, K. F., 2002. "The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies," Journal of Business Venturing, Elsevier, vol. 17(2), pages 123-142, March.
    3. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    4. Seungku Ahn & Juil Kim, 2019. "The Effect of Managerial Characteristics on the Performance of Technology-Based Start-ups in Korea," International Journal of Global Business and Competitiveness, Springer, vol. 14(1), pages 11-23, December.
    5. Munjae Lee, 2018. "Strategies for Promoting the Medical Device Industry in Korea: An Analytical Hierarchy Process Analysis," IJERPH, MDPI, vol. 15(12), pages 1-13, November.
    6. Shrader, Rodney C. & Simon, Mark, 1997. "Corporate versus independent new ventures: Resource, strategy, and performance differences," Journal of Business Venturing, Elsevier, vol. 12(1), pages 47-66, January.
    7. J. Bruneel & B. Clarysse & M. Wright, 2009. "Linking Entrepreneurial Strategy and Firm Growth," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/571, Ghent University, Faculty of Economics and Business Administration.
    8. Kim, Jongwoo & Kim, Hongil & Geum, Youngjung, 2023. "How to succeed in the market? Predicting startup success using a machine learning approach," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    9. Gerlach, Sibylle & Feil, Jan-Henning, 2022. "Erfolgsfaktoren von Agrifood-Startups – erste empirische Erkenntnisse aus Deutschland," 62nd Annual Conference, Stuttgart, Germany, September 7-9, 2022 329615, German Association of Agricultural Economists (GEWISOLA).
    10. Bamford, Charles E. & Dean, Thomas J. & Douglas, Thomas J., 2004. "The temporal nature of growth determinants in new bank foundings: implications for new venture research design," Journal of Business Venturing, Elsevier, vol. 19(6), pages 899-919, November.
    11. Watson, Warren & Stewart, Wayne Jr. & BarNir, Anat, 2003. "The effects of human capital, organizational demography, and interpersonal processes on venture partner perceptions of firm profit and growth," Journal of Business Venturing, Elsevier, vol. 18(2), pages 145-164, March.
    12. Jose L. Salmeron & Taha Mansouri & Mohammad Reza Sadeghi Moghaddam & Narjes Yousefi & Alireza Tayebi, 2023. "Startup’s critical failure factors dynamic modeling using FCM," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-18, December.
    13. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1113-1145, December.
    14. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    15. Kranzusch, Peter & Kay, Rosemarie, 2011. "Das Gründerpanel des IfM Bonn: Konzeption und Nutzungsmöglichkeiten," IfM-Materialien 208, Institut für Mittelstandsforschung (IfM) Bonn.
    16. Anthony J. Evans, 2016. "The unintended consequences of easy money: How access to finance impedes entrepreneurship," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(3), pages 233-252, September.
    17. Magnus Schückes & Tobias Gutmann, 2021. "Why do startups pursue initial coin offerings (ICOs)? The role of economic drivers and social identity on funding choice," Small Business Economics, Springer, vol. 57(2), pages 1027-1052, August.
    18. Nuanphromsakul, Kajohnjak & Szczepańska-Woszczyna, Katarzyna & Kot, Sebastian & Chaveesuk, Singha & Chaiyasoonthorn, Wornchanok, 2022. "Sustainability of Rubber Farmers Cooperatives: Empirical Evaluation of Determining Factors," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4), December.
    19. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1109-1139, August.
    20. Niels Bosma & Sander Wennekers, 2004. "Entrepreneurial Attitudes Versus Entrepreneurial Activities (GEM)," Scales Research Reports A200316, EIM Business and Policy Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:1948-:d:219169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.