PHP384 - The Challenge of Critical Mass To Be Overcome By International HTA Networks

Abstract

HTA agencies have structured into three international networks: EUnetHTA in Europe, HTAsiaLink in Asia, RedETSA in Latin America. This study aims to describe the economic behaviour of agencies that participate in these collaborations and specifically discuss the implications of a network setting. Network economics provide analytic models that were applied to HTA networks. Theories distinguish 2 types of network effect that influence the demand for network services. Direct network effect derives from the value of benefit from other members’ contribution, while indirect network effect is generated by additional services developed by the network to increase its efficiency. Two demand models are described depending on whether the network effects are heterogeneous among members, or the standalone benefits (based on intrinsic characteristics) are heterogeneous. In the case of HTA networks, HTA agencies’ willingness to participate in an HTA network is a function of the potential to collaborate with other members. Hence the relevant analytic frame corresponds to the case of heterogeneous network effects. The demand function for HTA networks specifies 3 equilibriums that correspond to various sizes of the networks: the unstable equilibrium defines the critical mass, if the networks grow beyond this point it will develop until it reaches its optimal market size (stable equilibrium). If, however, the HTA network struggles to reach the critical mass, it will eventually collapse to the size of 0 (stable equilibrium). The demand for HTA networks presents characteristics specific to network industries. HTA agencies’ willingness to join the network is mostly driven by the expected benefit derived from the interaction with other members (direct network effect); we highlighted the need for an HTA network to grow beyond the critical mass. This gives a new perspective on HTA networks’ public communications that can be considered a marketing means to attract new agencies/members.