Medical Device Product Innovation Choices in Asia: An Empirical Analysis Based on Product Space

Abstract

Due to the increasing demand for health care, identifying and evaluating the feasibility of local medical device innovation and production is an important guarantee for the long-term sustainable development of a national health system, especially for Asian countries/regions that are plagued by aging populations. This article analyzes the international trade data of 46 HS 6-digit medical device products exported from 49 countries from 1999 to 2019, and constructs a global medical device product space. Furthermore, the innovation potential and opportunities of potential medical device products in major Asian countries are evaluated by examining the dynamic relationship between the product distance and the acquisition of comparative advantages for medical device products based on an empirical model. The regression results suggest that a close product distance improves the feasibility of developing a new medical device product. The smaller the product distance is, the more likely it is to increase the diversity of the medical device products of a country by maintaining the existing comparative advantages and gaining potential comparative advantages. Furthermore, we follow the conclusions of the empirical model and analyze the product space evolution, and potential product distance and gains of major Asian medical device exporters. These conclusions may help entrepreneurs identify potential development directions and help government policy-makers formulate policies that are in line with national realities.