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Competitive environment as a factor of introducing innovations in the medical equipment segment

Varvus S.A. Financial University under Government of Russian Federation, Moscow, Russian Federation ( varvus@mail.ru )

Nizeev A.D. Financial University under Government of Russian Federation, Moscow, Russian Federation ( artem_nizeev@mail.ru )

Journal: Economic Analysis: Theory and Practice, #8, 2019

Subject The article discusses competitive relationships between firms in the medical equipment market that arise along the entire value chain.
Objectives The focus is on exploring the competitive environment in the segment of irradiating and electrotherapy equipment, which is used for medical purposes.
Methods The paper employs the least squares method to forecast revenue for 2018–2019, and comparative analysis.
Results We calculated statistical key figures, like market share variance, indexes of entropy and concentration. We made an attempt to predict trends and level of revenue for 2018 and 2019. Based on the analysis, in 2019 the revenue of the industry will increase and amount to 53.466 billion RUB, with a tolerance of 0.9 billion RUB.
Conclusions The calculated CR3 index indicated a decline in the market share of leading firms in the selected segment. This can be explained by the socio-economic development of the country. High interest rate, long payback period of innovations in medicine, a decline in real household disposable incomes in 2015 had a lagged effect on the the industry development.


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