Small Medium Enterprises: The Powerhouse of Innovation for Medical Device Industry

Small Medium Enterprises: The Powerhouse of Innovation for Medical Device Industry

Summary

Rapid innovation is a pre-condition for survival of medical device companies, given the quick turnaround time of the product innovation cycle. Aging population and swelling healthcare expenditures across the world are pushing medical device companies to find cost efficiencies and bring down product costs, again putting pressure on speedy innovation.

Small and medium business enterprises (SMEs) have traditionally played a crucial role in the development of new products in the biotech and medical device industry. These firms due to their quick adaptability, ability to identify market niches, and considerable innovative potential form an important component of the healthcare industry worldwide. Accounting for more than 50% of all pipeline products, they have a significant role in the future of healthcare industry. Analysis of 3,988 products currently in pipeline reveals that 56% of them are being developed by small businesses. By 2008, 95% of the medical device sector was comprised of SMEs. Moreover, analysis of 1914 pipeline products revealed more than 80% of all products being developed by companies headquartered in the US.

Most of new product development activity was observed in high growth therapy areas such as in-vitro diagnostics, cardiology and orthopedics. 59% of all pipeline products developed by SMEs were focused in these therapy areas. This is in line with medical device companies trying to capitalize on the aging population in key markets such as US and Europe. Improving cost efficiency and reducing healthcare costs are few of the key factors driving the new product development in diagnostics, home monitoring and minimal invasive technology.

Scope

- The study talks about the recent developments in the medical device industry and the impact of small medium enterprises (SMEs) on the market.
- It provides information on the composition of the medical device industry in North America and Europe.
- It also discusses briefly about the geographic break-up of SME medical devices, the share of pipeline products developed by SMEs and the pipeline analysis of SMEs.

Reasons to buy

- Be abreast of key events in the medical device industry
- Make informed decisions by understanding the rationale behind key events
- Align your market strategies with the events which can impact your business
- Develop proactive marketing strategies and business plans through real-time updates of pipeline products, technologies and financial deals