Healthcare innovation: an international view

MEDICA 2013, the world’s largest medical trade fair, and COMPAMED 2013, the leading trade fair for the supplier market for medical technology manufacturing, recently took place in Düsseldorf, Germany. More than half of the 132,000 trade visitors came from outside Germany, arriving from more than 120 countries. Featuring 4,641 exhibitors, representing 66 countries, visitors obtained information on the entire spectrum of new products for highquality, efficient medical care – ranging from medical technology and electromedicine, laboratory technology, physiotherapy products and orthopaedic technology and health IT. Among the many companies showcasing innovations at MEDICA, were around 300 British exhibitors. This year, MEDICA offered a platform to promote investment in the UK life sciences market with a dedicated event entitled: “Inside the National Health Service – how do I sell my products in the UK?” The event was opened by UK Trade & Investment (UTKI) business ambassador for healthcare and life sciences, Professor Lord Kakkar, who gave an overview of opportunities within the medical technology sector in the UK. Lord Kakkar, commented: “The healthcare sector is facing unprecedented challenges – including a rise in costs due to an increasingly ageing population with long-term chronic conditions, along with patients demanding more from their care regime. This is set against a backdrop of increasing cost containment from Governments to spend on healthcare. “In spite of these challenges, I believe there are an enormous number of opportunities to move away from the 20th Century ‘sick care model’ and embrace a 21st Century ‘healthcare model’. In order to make this move, healthcare providers, clinicians, industry and governments need to innovate.” He went on to highlight the fact that there are “an immense number of opportunities for companies looking to innovate within the UK medical technology ecosystem,” adding that, “despite a difficult economic climate, in which other sectors have struggled, the UK medical technology sector has rapidly grown.” He pointed out that, between 2009-12, the UK medical technology sector has:
 
• Increased its combined turnover by 50%.
• Increased the number of medical technology companies based in the UK by 12%.
 • Increased the number of people employed in the sector by 40%.

He stated that the UK Government recognises the positive impact the sector plays in bringing innovation, health and wealth to society and is working to “consolidate the unique features of the UK medical technology development ecosystem to make it an attractive place for companies to locate their businesses. “When it comes to technology, the NHS – as the largest organisation of any kind in Europe – is exceptionally well placed to drive innovation and new ways of working. The Government is committed to ensuring that this happens as outlined in its strategy Innovation, Health and Wealth; accelerating the adoption and diffusion of innovation in the NHS is key,” said Lord Kakkar. He acknowledged that, with the increasing cost, risk and complexity of research and development, it is “ever more challenging for medical technology companies to move through the development pathway and commercialise innovations.” To address this challenge, the UK Government is introducing a suite of fiscal measures including: targeted investment, funding initiatives and tax incentives to stimulate innovation and growth; funding R&D and manufacturing for start-ups and small and medium enterprises (SMEs) through to large global enterprises. Examples include:

• Low corporation tax rate: dropping to 21% by April 2014 and decreasing to 20% from April 2015.