Innovation in Healthcare Delivery Systems : A Conceptual Framework

Abstract

The healthcare industry has experienced a proliferation of innovations aimed at enhancing life expectancy, quality of life, diagnostic and treatment options, as well as the efficiency and cost effectiveness of the healthcare system. Information technology has played a vital role in the innovation of healthcare systems. Despite the surge in innovation, theoretical research on the art and science of healthcare innovation has been limited. One of the driving forces in research is a conceptual framework that provides researchers with the foundation upon which their studies are built. This paper begins with a definition of healthcare innovation and an understanding of how innovation occurs in healthcare. A conceptual framework is then developed which articulates the intervening variables that drive innovation in healthcare. Based on the proposed definition of healthcare innovation, the dimensions of healthcare innovation, the process of healthcare innovation and the conceptual framework, this paper opens the door for researchers to address several questions regarding innovation in healthcare. If the concept of healthcare innovation can be clarified, then it may become easier for health policymakers and practitioners to evaluate, adopt and procure services in ways that realistically recognize, encourage and give priority to truly valuable healthcare innovations. Lastly, this paper presents 10 research questions that are pertinent to the field of healthcare innovation. It is believed that the answers to these and other such questions will hold the key to future advances in healthcare innovation research. Key words: Healthcare innovation, innovation process Introduction Innovation in healthcare continues to be a driving force in the quest to balance cost containment and health care quality. Innovation is considered to be a critical component of business productivity and competitive survival Zaltman, et al., 1973. Technological innovations present vast opportunities for 1) product innovation the introduction of new types of goods and services for the external market and 2) process innovation enhancement of internal production processes for goods and services Perri 6, 1993. Product innovations are essential to the life of any organization since they provide the most obvious means for generating incremental revenues Johne, 1999. Similarly, process innovation is concerned with improving internal capabilities Johne and Davies, 2000; Johne, 1999 and safeguarding and improving quality Johne, 1999.