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This section aims to draw attention of the complexity of the health sector due to large-scale organizational entity, and huge staff numbers. Innovation in health sector is influenced by government policies, professional groupings, political and government policies, and the large range of stakeholder involved.

Four service subsectors - health, financial, education, and business services—make intensive use of highly skilled workers. In health and financial services, highly skilled professionals apply specialized knowledge supported by semi-professionals and other staff to effect very different transformations. In health services, knowledge in areas such as biochemistry, physiology, pharmaceuticals, and surgery is applied to influence bodily well-being; information is exchanged with patients, communities, and other practitioners about which behaviors may further support this. In many countries, health services feature large-scale R&D activities alongside more routine, testing-oriented laboratory work (Miles, 2008).

4.1 What Makes the Healthcare Sector Different?

Røtnes and Staalesen (2009) in their study regarded user driven innovation in the healthcare sector suggest that this sector is different from other economic sectors. Innovators must know the field well in order to succeed. The following sections highlight distinctive features of the healthcare sector which innovators must be aware of during the innovation process and act in a way to prevent the process of innovation.

4.1.1 Big Sector, Complex Structure

Røtnes and Staalesen (2009) identify healthcare system as very complex. The complexity of the sector itself complicates innovation, and the implementation of new solutions becomes a major management issue. The level of complexity means that health systems are very resilient to pressure, even where that pressure is for positive change. Its operation is based on a web of structures, processes and patterns where the relationship between cause and effect is often uncertain.

In their point of view even the large number of people employed in the sector can be a barrier for innovation because effective communication and structure for knowledge management may be difficult. Also, the sector has several professional groupings with their own perspectives, beliefs and interests. Medical professions show resistance to undertake changes which may be risky to patients or others. There is a wide range of stakeholders in the healthcare sector which means that there is a strong requirement to consult and review planned changes with all of them.

Healthcare sector is an extremely complex and large-scale organizational entity, composed of huge staff numbers, a large range of professional and semi-professional, and a diversity of organizational arrangements and service processes. Healthcare providers face difficulties in communicating the need for innovation and will militate against the successful dissemination of innovative ideas and practices (Koch and Hauknes, 2005).

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