A new pattern of competition in Medical device industry – Disposable ENT Examina
Digital technology has become a medical equipment “mainstream” technology. In recent years, the United States GE, Siemens, Philips and other multinational companies through continuous integration of medical imaging equipment, small and medium enterprises to build its strong medical device industry status. Some have even suggested that the industry is a saying: In the wave of digital technology, medical device industries have begun to digitize “enclosure movement.” It is foreseeable that intellectual property rights of digital technology will be the medical device industry, the core competitiveness, and such competition is not a simple imitation will be able to keep pace with the technology.
Advantage in seeking to develop in the butt
Digital Medical Device Industry in the 21st century is considered the most promising of the sunrise industries. According to the U.S. health care industry data released Manufacturers Association, the global digital medical equipment, has annual sales of approximately 60 billion U.S. dollars, the annual increase of about 10%. China’s digital medical equipment market is not small, it is estimated that by 2015, China’s digital medical equipment market will be more than 150 billion yuan.
Many multinational companies such as GE, Siemens, Philips, Toshiba and other medical equipment market in China to see this big “cake” after another. They sell key production base and even R & D centers are turning to China, and constantly look for suitable targets for mergers and acquisitions with the intention of the Chinese medical device market, this piece of “cake” enclosure and occupation of the areas within its control. Especially in the high-end products, the continued growth of the Chinese signs of enterprises siege, squeezing the formation of Chinese brands.
However, from another point of view, digital “enclosure” for technology-supported enterprises with opportunities for development. In a leading edge technology for the digital era is the era of resource allocation and integration with enterprise capital and technological advantages can be resource allocation and integration, but only an advantage for businesses, according to their size and advantages, will be self – there are advantages in resources to achieve docking with large companies, is the best way out of its development. Such as medical equipment industry, some very strong professional manufacturer of the original parts (OEM) manufacturers can supply more specifically to the direction, once the butt and transnational corporations, mutual parasitism, the future is likely to become the industry’s “invisible “Champion.
To have more independent intellectual property rights technology
In the knowledge economy era, who have more independent intellectual property rights technology will come to have a stronger ability to innovate, compete grasps the initiative. A fundamental change in market competition, competition for survival strategies of transnational corporations also changed, they are now implemented as a competitive strategy based on IP technology, leading to a strong capital strength relative to support, in order to grab market share from the past as the main means in order to become independent intellectual property rights and advantages of technology to gain market competition as a means to keep control. Independent intellectual property rights for the pace of technology development and technical reliability, a determinant of business or even the country’s competitiveness edge technology to form the technical standards also showed that the ability to compete.
Fortune 500 companies in the world, its core technology may not be the most cutting-edge technology, but they have independent intellectual property rights of this technology, or it is the technology standard-setters. Microsoft, IBM, General Electric, Siemens and other multinational giants have a core of these intellectual property technologies, but a number of technology to become international standards, rules and platform technologies. It is precisely because these companies have independent intellectual property rights of technology and the formation of the advantages of technology standards, so competition in the market have a strong technological competitiveness, but also have the initiative to control the market.
Statistics show that in 2000, IBM’s total profits of 81 billion U.S. dollars, of which intellectual property licensing, transfer income of 1.7 billion U.S. dollars, accounting for 21% of total profits. Thus, with independent intellectual property rights, advantages of technology, the formation of standards, and put it well to realize industrialization, can bring benefits for the enterprise to create social value is the future and survival of this business based on winning the “magic weapon”, is the key to the strength of competition. In the era of knowledge economy in the future sale of the business market, a lot more will be the higher value added
Intangible technology products.
The accumulation of knowledge is a source of innovation
In the digital age, any technological innovation are built on the early accumulation of knowledge carried out based on improvement and innovation and development, knowledge accumulation has become a source of innovation in a company.
Multinational corporations have been able to control the cutting-edge technology, the main reason is that these companies have a number of patented technologies, these patents is the company’s knowledge accumulation, the formation of the company’s intangible assets with knowledge, is to take someone else do not go, do not go stealing assets. Some of these patented technologies to form the industry standard, and can use standard techniques to form suppressed competitors. Medical device industry, many multinational companies attach great importance to its associated accumulation of knowledge, such as Siemens, GE and so continued to use their abundant capital, mergers and acquisitions around the world have an advantage in technology enterprises.
In other words, they have learned from the past, simply competing products to market changes and competition for independent innovation and superior technology to control the market share of the purpose of as much as possible appear on the world of medical equipment related to its innovative technology into in order to continuously to enhance its competitive advantage in the field position.
Technical Barriers to gradually upgrade
The future of competition between the companies, and gradually upgraded to national technical, economic and trade competition, many developed countries according to their own intellectual property advantages, the continued implementation of IP strategy, using IP technology to determine the technical standards as a national trade barriers, blocking products from other countries to enter, thereby firmly hold the world’s technological and economic development of the commanding heights. Some areas of China’s medical equipment industry has been a monopoly of transnational corporations is a true portrayal of the results of this competition.
Multinational companies are trying to make their intellectual property coverage of a wider and wider scope, and try to make it a technology standard. Because a company’s core technology, by becoming a standard technology chasing someone else, then this technique has become the business advantages of technology. This legally recognized with the initiative of the technology, which enables the gap between enterprises because of intellectual property as a direct result to enlarge the gap between the pace of development. Microsoft is a very typical and indicative example of the rich: Microsoft relies on its intellectual property and the accumulation of knowledge of the advantages of its products as an application standard, so that the company has a unique absolute advantage over their competitors, an advantage for Microsoft company became the dominant and the entire software industry hub.
Large foreign companies selling products in the promotion of their common underlying technology and standards, in this way allows to enter the market after the others had to be developed on the basis of criteria and application, the latter cost will be long and endless. In the medical device industry, medical digital imaging and transmission technology standards (DICOM3.0) is a good example: DICOM standard is 1985 American College of Radiology and the American National Electrical Manufacturers Association, according to several of the company’s products and the development of technical standards in the different manufacturers of the devices transmit images and information on methods and conventions, after several amendments, has become the international standard.
All countries must comply with this standard design and development of digital medical equipment, almost all of China’s digital medical equipment used in product design and development of this standard, otherwise difficult to achieve the exchange of information between different devices, and transmission images. In fact, the multinational companies is to use this advantage to control the technology standards for the formation of the market, and as part of its technical barriers, the greatest possible way to block the entry of products from other countries, but also shows that the pattern of international market competition is changing, from the past tariff barriers on the use of policy instruments into regulatory barriers to competition in the technology means.
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