Study of the research and development potential and the scope for future development of medical engineering in Bavaria

by order of the

Bavarian State Ministry for Economic Affairs, Transport and Technology

conducted by

Dr. Wieselhuber & Partner GmbH - Roland Berger & Partner GmbH - Fraunhofer Management GmbH

The target audience for this study includes: (Study only available in German language, it gives a comprehensive survey of this sector in Bavaria)

• Companies working in the field of medical engineering whose main activities include:
  • Dentistry
  • Diagnostics
  • Minimally-invasive therapy/surgery instruments
  • Electromedical devices
  • Orthopaedics and implants/prosthetic devices
• Research institutes with technical and clinical competence
• Users (hospitals, doctors)
• Hospital managers
• Funds
• Anybody involved in the fields of medical engineering and pharma

The formation of the Forum MedTech Pharma is a result of this Med-Tech-Study. The final study, consisting of 100 pages and released in November 1997, can be ordered from the office of the Forum MedTech Pharma e.V. (in German only).

Contribution for print and mailing: EUR 25 (incl. VAT)
Cash on delivery.

Survey of the Med-Tech-Study

The study covers the importance of medical engineering in Bavaria, the potential for future developments, the current state of the art of research and development in the field of medical engineering field and the problems facing Bavarian medical engineering companies, especially small and medium-sized companies.

The medical engineering industry is a very important line of business to Bavaria supporting 20,000 jobs within more than 200 companies. Bavaria plays a key role on the world market for medical engineering. Bavarian companies share about 3.4% of this market, with total revenues of 200 billion DM, representing 26% of the total output of medical engineering devices in Germany.

There has been a downturn in the German medical technology market in recent years, particularly in the electromedical device sector, where margins have been subject to growing pressure. However, the market for medical technology is still expected to grow more quickly than the economy in general. Growth rates of 6 to 7% per year are predicted for the years to 1998 to 2003.

The medical engineering market is expected to continue to grow in the medium to long term because the conditions which have driven growth in the past will continue to do so in the future. For this reason, medical engineering offers considerable market potential in the future. However, reducing the costs of the german public health system has become an important consideration for working in the medical engineering field. New product innovations must both solve health problems and deliver savings. The added value of a company working in the medical engineering industry will shift from production and sale of a product to providing industrial services in the future. Companies operating in this area must develop new marketing and service strategies to meet the increasing demands of the customers.

As a result of its interdisciplinary character, medical engineering contributes to the development and implementation of different basic technologies. Funding from the Bavarian State government for development of new medical engineering devices has led to the establishment of "Bavarian Competence Centres" (bayerische Kompetenzzentren) in this technology sector. Furthermore the State government has allocated additional funding to support innovation in the medical technology field.

This Med-Tech-Study focuses particularly trade-related obstacles to innovation and specific problems facing small and medium-sized companies. The structure of innovation and sale of medical engineering products is much more complex than other industrial products. This structure is strongly governed by national and international laws and regulations for the licensing and monitoring of products. The complex multi-stage innovation process is influenced by many parties. Trade-related obstacles to innovation are especially important for small and medium-sized companies that have suffered unsuccessful developments. An example of the obstacles facing these companies is the difficulty in accessing clinical trials.

The recommendations of the Med-Tech-Study take into consideration the special situation of the Bavarian medical engineering industry.

The most important recommendation of this study is the foundation of a society called "Forum MedTech Pharma" whose membership includes not only companies, scientists medical practitioners and hospitals, but also members of funds, hospital managers and associations. This Forum is to act as a communication and co-operation platform, guaranteeing the strong position of Bavarian companies in the face of world-wide competition and safeguarding jobs in Bavaria. The activities of this Forum are to be financed by the Bavarian State government and the individual members in a kind of public-private partnership. However, the Forum shall operate independently and shall be solely responsible for defining and implementing measures it takes. The objective of the Forum it to foster the exchange of experiences and to promote contacts within the medical engineering sector, including small and medium-sized companies and the research and implementation functions within hospitals and practice.