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J. Open Innov. Technol. Mark. Complex. 2017, 3(1), 3; (registering DOI)

Medical innovation and social externality

Department of Health Sciences, Lehman College/CUNY, 250 Bedford Park Blvd West, Bronx, NY 11064, USA
Graduate School of Public Administration, Seoul National University, 56-1 Sillim-dong, Gwanak-gu, Seoul, South Korea
Author to whom correspondence should be addressed.
Received: 31 December 2016 / Accepted: 31 January 2017 / Published: 16 February 2017
PDF [351 KB, uploaded 8 February 2018]


Healthcare expenditure in the United States has grown and will continue to increase. The increasing healthcare expenditure is to reduce real income as well as to diminish total utility and increase financial stresses. This study argues that the most critical factor that increases healthcare expenditures during last 50 years has been the advent, adoption and diffusion of new medical technologies that include new drugs, equipment and healthcare delivery systems. This study introduces various examples how medical innovations influence to increase healthcare expenditures. In company with the advanced medical technology, this study suggests a free market in medical technology that means less regulation and less subsidization to healthcare market participants, such as healthcare providers, insurers, and healthcare consumers to reduce healthcare expenditures.
Keywords: Medical innovation, Healthcare expenditure, Social externality Medical innovation, Healthcare expenditure, Social externality
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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Roh, C.-Y.; Kim, S. Medical innovation and social externality. J. Open Innov. Technol. Mark. Complex. 2017, 3, 3.

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J. Open Innov. Technol. Mark. Complex. EISSN 2199-8531 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
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