Innovation pillars: Past and emerging
The ability of an economy to support medical technology innovation is directly related to the presence of five key pillars of innovation. These pillars create a foundation for the development of social, technical, political and economic forces that come together to create an ecosystem which fosters the growth of medical technology. For a deeper understanding of both the current and new medical technology innovation pillars, click on the headings below.
The five pillars of medical technology innovation
Please select one of the five pillars of medical technology innovation at the left
$350 billion
the size of the global device industry
Market incentives
Healthcare incentives
The US spent more per capita on healthcare than the other eight Scorecard countries.
High levels of reimbursement for medical procedures and generous coverage fuelled physician adoption of new innovations. All countries reviewed in the Scorecard expect to continue to see significant growth per capita and total healthcare costs over the next decade.
$2.5 trillion
Amount US spent on healthcare in 2009
Innovative resources
Innovative output
The US established itself as a world leader in academic medical centers.
Annual NIH grant funding exceeding $25billion per year supported the advancement of medicine.
China ranks second among the nine countries in number of research professionals, but it has not been as productive in obtaining medical technology patents.
$350 billion
global medial device sales
Regulatory approval process
Legal environment
The FDA has been a global leader in setting standards and guidelines for the safety and efficacy of medical technologies.
Other countries would often wait to see FDA's position before acting upon medical technology applications.
Citizens of countries with more efficient and less uncertain regulatory approval processes will gain earlier access to innovative medical technology, and providers in those countries will benefit from more experience using new devices.
Six months vs three months
average time to approve a product in the US vs Europe
Healthcare demand
Needs and Infrastructure
Americans seemed to have a higher demand for healthcare services as measured by their frequency of doctor visits.
During the past 50 years, the proportion of healthcare costs paid by US patients has declined from 47% to 12%.
PwC expects the US score for this pillar will drop, while scores for China, India and Brazil will rise.
2nd
US rank for ease of reimbursement
Investment environment
Medical technology commercialization
Medical technologies ranked as the second- or third-largest category among venture capital and angel investors.
US venture capital funding averaged approximately $2.5 billion annually during the last decade, enabling commercialization of innovations from academia and elsewhere.
With the growth of emerging markets, global venture capital firms increasingly will see developing nations as more attractive.
$2.5 billion
average annual funding from US VC community
Powerful financial incentives
Leading resources for innovation
Supportive regulatory system
Demanding, price-insensitive patients
Supportive investment community
Five new pillars of innovation
Please select one of the five new pillars of innovation at the left
$350 billion
the size of the global device industry
Mobile-health, value-based purchasing, and personalized medicine will combine to drive more cost-effective, outcome-based initiatives and greater collaboration among payers, providers and the medical technology industry to develop and deliver whole-care, patient-centered solutions
4th
US rank in internet bandwidth (bits/second/person)
The academic leadership that helped enable innovative research in the West is migrating to Asia and South America. Some US and European universities and medical colleges have responded by seeking partnerships abroad to reduce competitive overlap and create synergies.
$25 billion
Annual NIH grant funding
Medical technology companies will continue to move into markets where they can obtain regulatory approval more quickly, generate revenues, and engage patients and providers in the cycle of innovation to advance their products and services.
The FDA and other more restrictive regulators will come under greater pressure to improve and streamline how they review new products.
3rd
US rank in researchers per million
Providers, who will be more responsible for health outcomes will look to companies worldwide for technology solutions that offer more integrated, holistic, cost-effective devices combined with wellness and disease management solutions.
17.3%
Amount the US spent on healthcare in 2009
More US-based venture capitalists will open local offices overseas, partner with counterparts outside the country, seek co-investment opportunities and identify target investee companies abroad. Beyond private funding, some nations have adopted innovation strategies.
$2.5 billion
average annual funding from US VC community
System-oriented and value-based incentives
Global networks of academic medical centers
Competing regulatory system
Individualized solutions and price-sensitive customers
Global financial networks
Global Contacts
Brazil
| Eliane Kihara Tel: +55 11 3674 2455 | Rodrigo Vinau Tel: +55 11 3674 2000 |
China
| Mark Gilbraith Tel: +86 21 2323 2898 | David Wood Tel: +86 10 6533 5335 | Jia X Xu Tel: +86 10 6533 7734 |
France
| Philippe Nguyen Tel: +33 1 56 57 7769 |
Germany
| Volker Fitzner Tel: +49 69 9585 5602 | Martin Schloh Tel: +49 89 5790 5102 | Zun-Gon Kim Tel: +49 89 5790 6245 |
India
| Sujay Shetty Tel: +91 22 6669 1305 |
Israel
| Claudio Yarza Tel: +972 3 795 4 590 |
Japan
| Kenichiro Abe Tel: +81 80 3158 5929 | Kensuke K Koda Tel: +81 90 6514 8101 | Mie M Onodera Tel: +81 03 5251 2791 | Kaoru K Sato Tel: +81 80 3317 6957 |
United Kingdom
| Jo Pisani Tel: +44 207 804 3744 | Simon Friend Tel: +44 20 7213 4875 | Steve Arlington Tel: +44 20 7213 4622 |
United States
| Tracy Lefteroff Tel: +1 408 817 4176 | Christopher Wasden Tel: +1 646 471 6090 | Michael Swanick Tel: +1 267 330 6060 | David Levy Tel: +1 646 471 1070 |
- Michael Swanick
- US Pharmaceuticals, Medical Device and Life Sciences Industry Leader
- Tel: +1 (267) 330 6060
- Tracy Lefteroff
- National Life Sciences Partner
- Tel: +1 (408) 817 4176
- Christopher Wasden
- Strategy and Innovation Practice Managing Director
- Tel: +1 (646) 471 6090
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