Journal of Open Innovation: Technology, Market and Complexity (Mar 2024)

Regulation architecture of open innovation under digital transformation: Case study on telemedicine and for-profit-hospital

  • JinHyo Joseph Yun,
  • Xiaofei Zhao,
  • Zheng Liu

Journal volume & issue
Vol. 10, no. 1
p. 100252

Abstract

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This research seeks to answer the following research question “What kind of regulation architecture can stimulate creative destruction and growth of two different types of new industries like telemedicine, and for-profit-hospital?” Online interview method was used to investigate the telemedicine industry and for-profit-hospitals at Daegu-Gyeongbuk province in South Korea and Cardiff-Wales in the UK. Findings provided following grounded theories. First, the way to create a converted new industry is not deregulation but regulation conversion. Though, deregulation helps to expand the modern market, it could disturb the emergence and growth of new markets. Second, the regulation can be an essential policy method to create emerging new markets when there are enough (potential) suppliers owing to technological developments or the accumulation of a new workforce equipped with new technologies. According to the UK for-profit-hospitals, regulations for consumer protection and decreasing transaction costs or complexity in the new market could trigger market creation. Third, digital transformation has motivated open innovation dynamics in all industries. The expanded open innovation dynamics with digital transformation can promote, most of all, the appearance of converted new industries like telemedicine.

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