Table of Contents

Restoring America’s Global Competitiveness through Innovation

Restoring America’s Global Competitiveness through Innovation

New Horizons in International Business series

Edited by Ben L. Kedia and Subhash C. Jain

Though we live in an era of rapid innovation, the United States has introduced comparatively few commercial innovations within the past decade. Innovation shortfall contributes to weaker trade performance, decreased productivity growth, lower wages and many other economic woes. This study provides insightful recommendations for developing enhanced innovation efforts that could help foster substantial, long-term economic growth.

Chapter 13: Restoring America’s competitiveness through the health sector: preliminary findings from a time-driven activity-based costing (TDABC) study

Ricky Leung

Subjects: business and management, international business, organisational innovation, innovation and technology, organisational innovation


In the wake of global economic downturns, American organizations need innovative business practices to restore and preserve competitiveness (Porter and Rivkin, 2012). In the entire American economy, healthcare expenditures have been large and have continued to rise. Keehan et al. (2011) estimated healthcare expenditures to be 17.6 percent of the nation’s GDP in 2009. By 2020, the corresponding figure could reach 19.8 percent. These figures suggest that reforming the nation’s health sector is integral to restoring America’s competitiveness. Yet health reforms largely depend on accurate cost assessment – a seemingly easy task that is actually quite difficult for healthcare administrators. Healthcare administrators often rely on payments (from patients) and/or charges (by health professionals) data to arrive at incomplete estimates regarding the ‘cost’ of health services. This type of cost assessment is inaccurate and misses significant opportunities to improve efficiency. In this chapter, we report results of an exploratory study with an innovative costing method – time-driven activity-based costing (TDABC) – in the literature (Demeere et al., 2009; Kaplan and Porter, 2011). As our experience suggests, engaging different stakeholders is essential to implementing and benefiting from TDABC.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information