engleski

Personalized Medicine Industry Model Development

Health care is a growing business, but its trajectory patterns are hard to decipher at the moment. This paper provides a short overview of issues important for developing business models for the personalized medicine sector (PM). The paper draws on institutional theory, particularly transaction costs economics (TCE) in an attempt to draft a conceptual framework applicable for identifying relationship patterns among institutional entities, i.e. industry actors in the Personalized Medicine (PM) field. According to theory, relationships among industry actors are expected to evolve depending on the manifestation of many contextual factors and their developments: investment activity, public interests vested, technology development, market structure, regulatory environment, demographic factors, personal preferences, natural factors, etc. In our belief, a descriptive model of an industry should include a broader scope of entities besides directly competing firms. Our rationale is that market actors, in a resource dependence environment, sustain their activity by engaging in (bargaining) relationships with other entities with vested interests in the industry. Basically, we believe that predictions of future industry and particular entities’ business model development would be a function of available resources, power relations and regulation.

personalized medicine, business model, incomplete contracts, incentives, business scenarios

This work is part of the research program “Perspectives of maintaining the social state: towards the transformation of social security systems for individuals in personalized medicine” with project number IP-2013-11-5709, which is financed by the Croatian Science Foundation (HRZZ).