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This is the final version. It was first published by Linköping University Electronic Press at http://www.ep.liu.se/ecp_article/index.en.aspx?issue=067;article=030. ; The need to develop systems that comprise medical equipment and services to improve healthcare service efficiency and availability has become a pertinent concern in developed countries, as governments continue to focus on controlling healthcare expenditure. This research intends to explore value co-creation with multiple stakeholders at early stage new product-service system (PSS) development in regulated industries such as the medical equipment industry. This paper identifies the literature gap of stakeholder involvement in the process of new PSS development and compares the identified gap with the experience of industry practitioners. The fields relevant to the research focus are described and the characteristics of a new PSS are proposed as the basis of the research. This paper concludes with an initial proposition, that there is a need for an holistic approach to new PSS development and to have early multiple stakeholder input.

Can environmental legislation spur innovative response? This case describes the development of the automotive catalytic converter (ACC) at Johnson Matthey (JM), a precious metals company that entered the automotive industry as a component provider. The market was unfamiliar to JM and highly competitive, but in the 1970s the US Environmental Protection Agency (EPA) introduced standards for emissions control by automotive companies well ahead of current practice. Johnson Matthew responded to the prospect of market demand for a technology that could meet the regulations. The EPA policy of technology "forcing" stimulated collaboration for innovation among companies from a variety of industries. Our case evidence shows that the key innovator, JM, achieved its breakthrough as a result of proactive R&D management by the product champion together with sustained corporate support at a high level and partnership strategies.