Value Chain Traceability and Innovation in the Biomedical Industry

Abstract

This paper investigates how value chain traceability is being adopted by biomedical companies and its effects on process and product innovation. Value chain traceability is the ability to follow the flow of material and information from raw materials to processed components to production to customer experience. While prior research highlights how traceability can improve product safety and security, delivery, regulatory compliance, and sustainability, there has been little inquiry into how traceability can facilitate innovation. This research uses qualitative interview data from company executives and managers at 20 companies in the biomedical industry. Process innovation is common among most companies adopting traceability, and traceability can lead to product innovation from material substitution, process improvements, and product reconfiguration. A systems approach to value chain traceability can facilitate search for process and product innovation, and material and processed component traceability can be improved if there is optimized supplier selection, information sharing, and shared value. This research improves understanding about how companies are adopting traceability and how they can develop value chain traceability leading to process and product innovation.