Medtech companies prepare for an innovation makeover

| September 2016

The medical technology industry was on the forefront of innovation for decades, but now return on innovation investment is declining. The very notion of medtech innovation needs redefining in a New Health Economy that is focused on higher expectations for value and convenience. Medtech companies must be ready to compete in the new environment or risk being displaced by companies that can show evidence that their innovations create value.

The most successful medtech companies in the new health economy will be catalysts for change and critical problem solvers that create value for clinicians as they diagnose and treat patients. They will create innovation that appeals to consumers and their new expectations for a positive patient experience. All medtech companies need to determine how much to innovate, where to innovate, and how to innovate. The entire care continuum should determine medtech companies’ roles going forward.

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Key findings

PwC’s Health Research Institute (HRI) assessed the state of company-level innovation in medtech. More than 50 companies participated in the research, including those doing business in in-vitro diagnostics, disposable medical products, medical equipment, diversified life sciences, implantable devices, as well as other healthcare companies and new players in the field. Key findings include:

  1. The value of a device is no longer solely in the product itself.
  2. New competitors are staking their claim.
  3. New integrated services and business models that address clinician and consumer needs are becoming more important.
  4. Medtech executives expect a higher level of innovation over the next three years, but they lack formal processes to achieve their goals for new services and business models.
  5. Medtech companies have been slower to apply new social, mobile, analytic, and cloud technologies that other industries have used successfully.
  6. Medtech companies are looking to open innovation as a key approach to drive future growth.

Contact us

Daniel Garrett
Principal, National Leader Health IT
Tel: +1 (267) 330 8202
Email

Benjamin Isgur
Health Research Institute leader
Tel: +1 (214) 754 5091
Email

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