This paper observes the outcomes of innovations in medical industries and seeks ways to encourage firms to innovate. We measure the economic value of increase in life expectancy and health which are the ultimate goals of medical healthcare. We also analyze the value of medical research and development (R&D) and its ripple effects. We observe innovating factors such as medical industry licensing conditions to provide the outcome of medical R&D. We also show some examples of innovation such as the medical service field.

According to the research on economic value of health improvement that is followed by medical R&D, section 2 shows that elderly population is expected to increase from the effects of increase in overall population, income level, and disease survival rate. Decrease in mortality will also play a role in increasing the population. The estimated economic value of 10% decrease in mortality due to the medical R&D is 2,576 Trillion Won. Medical R&D helped develop the national healthcare in the past and has further potential. But, we need to make sure it goes on the right path and maintains cost efficiency.

In section 3, we look at direct and indirect contributions that medical R&D has on economic surplus. Economic value is directly affected by observing value-added and labor market employment. The surplus change is correctly and accurately measured when considering the indirect effect from other industries. Technological value analysis tells us that the contributions from medical R&D to the society are lower than those from high-technology manufacturing industries. The fact that it takes longer period of time for the effects to kick in might be the reason. Pharmaceutical and medical device industries benefited from R&D whereas employment suffered. Thus, the government should be attentive to the pros and cons of the medical R&D to benefit in the short and long run when forming a policy or regulations.

Section 4 examines the factors that optimize the economic surplus from medical innovations. Long run plan needs to be set to encourage R&D that increases the scale and positive outcome relative to the investment spending. To achieve this, network system like global medical R&D associations is necessary.

In the last section, innovation examples in the medical service field are listed. Because there exists an information asymmetry between the demand and supply of medical service industry, it is necessary to construct a system that satisfies the interest of both the consumers and investors. We observe that cost efficiency could be achieved through the supply side’s effort and increase the quality of medical service through commission based payment system (P4P).

When compared to other developed countries, Korean healthcare medical R&D needs more formal structure and promotion. The induced effect from the advancements in medical industry promotes more economic growth than that from other industries. Thus, we need to find ways to increase R&D spending and its results that stabilize the labor market. Enhanced regulations to increase the quantity and quality of medical industry are required. The regulatory reform should be conducted with long run plans to achieve this goal.

발간사
요 약

제1장 서 론
　1. 의료산업의 동향
　2. 의료산업의 혁신
　3. 연구의 구성
　참고문헌

제2장 의료연구개발에 따른 건강증진의 경제적 가치
　제1절 서 론
　제2절 건강증진의 경제적 가치 측정을 위한 이론
　제3절 건강증진의 경제적 가치 측정
　제4절 결 론
　참고문헌
　부 록

제3장 의료연구개발의 경제적 가치
　제1절 연구의 배경
　제2절 의료연구개발의 경제적 효과 분석 모형 및 변수 설명
　제3절 분석 결과
　제4절 요약 및 시사점
　참고문헌
　부 록

제4장 의료산업의 혁신 현황과 결정요인
　제1절 연구 배경 및 목적
　제2절 의료산업 혁신 추이와 현황
　제3절 의료산업 혁신요인 분석
　제4절 소 결
　참고문헌

제5장 의료서비스 혁신 사례와 시사점
　제1절 의료서비스 분야의 혁신 사례
　제2절 해외 의료서비스 혁신의 사례: 지불제도를 중심으로
　제3절 의료서비스 혁신의 제고방안
　참고문헌
　부 록

제6장 의료산업의 혁신을 위한 제언
　참고문헌

ABSTRACT