PwC Innovation Scorecard indicates emerging markets are gaining ground
Brussels, 18 January 2011 – Medical technology innovators are going first to market in Europe and, by 2020, will likely move into emerging countries next before entering the United States according to PwC’s Medical Technology Innovation Scorecard report that was launched today. Europe is also seen as a good location for investment as venture capital investment in medical technology grew 60 percent from 2000 to 2009 in Europe compared to 40 percent in the United States.
The PwC scorecard results show that the innovation leaders of today will find their position slipping during the next decade. Three trends are evident:
- The innovation ecosystem for medical device technology, long centred in the United States, is moving offshore. Increasingly, medical technology innovators are going outside the Unites States to seek clinical data, new product registration and first revenue
- US consumers are not always the first to benefit from advances in medical technology and could eventually be last in line. Innovators already are going first to market in Europe and will move into emerging countries next before entering the United States
- The nature of innovation is changing as developing nations become the leading markets for smaller, faster and more affordable devices that enable delivery of care anywhere and help bend the healthcare cost curve downward. These countries are free of the handicap of an entrenched healthcare system infrastructure that seeks to maintain the status quo. However, the difficulty of doing business in emerging countries and poor intellectual property protection could make these markets less attractive to multinational companies, despite their size, and could hinder these nations’ innovation leadership
“It is clear that if Europe wants to remain an innovation leader in the world, we need to make sure that an innovation-friendly environment for companies is encouraged. The EU 2020 growth strategy for the coming decade is based on a smart, sustainable and inclusive economy and we believe that the medical technology industry plays a pivotal part in this strategy. We strongly support the Innovation Partnership on Active and Healthy Ageing, as part of the EU's "Innovation Union" strategy, and we will continue to focus on maintaining Europe’s leading position in medtech innovation”, says John Wilkinson, Chief Executive of Eucomed.
The PwC report is based on the findings of their Medical Technology Innovation Scorecard, a multifaceted assessment of the capacity of nine countries to adapt to the changing nature of innovation: Brazil, China, France, Germany, India, Israel, Japan, the United Kingdom and the United States. The scorecard examines where each of the nine countries’ evaluation stands in relation to five broad “pillars”:
- Powerful financial incentives such as reimbursement for adoption of new technologies
- Resources for innovation, such as academic medical centres
- A supportive regulatory system
- Demanding and price-insensitive patients
- A supportive investment community of venture capitalists and other investors
The complete report is available for download at: www.pwc.com/innovationscorecard
About Eucomed
Eucomed is the European medical technology industry association. Its mission is to improve patient and clinician access to modern, innovative and reliable medical technology. Eucomed represents directly and indirectly 22,500 designers, manufacturers and suppliers of medical technology used in the diagnosis, prevention, treatment and amelioration of disease and disability. Small and medium sized companies make up more than 80% of this sector. The European medical technology industry invests some €5.8 billion in R&D and employs 435,000 highly skilled workers. For more information visit www.eucomed.org
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Ingmar de Gooijer
Director Communications
E: ingmar.degooijer@eucomed.org
T: +32 (0)2 775 92 24
M: +32 (0)492 97 14 70