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Healthcare Technology

The Healthcare Technology sector, sometimes referred to as the medical technology sector, covers manufacturers of a diverse range of medical devices and diagnostics ranging from sticking plasters to high-tech hospital equipment such as CT scanners, and from diagnostic test kits  (e.g. blood glucose monitors) to devices implanted in patients (e.g. pacemakers). It is estimated that 38 million people have contact with a medical device every day.  A medical device is distinct from a pharmaceutical in that it does not achieve its intended action by pharmacological, immunological or metabolic means and can be defined as any instrument, apparatus or material used for-

• Diagnostic, prevention, treatment of disease, injury or handicap
• Investigation, replacement or modification of the anatomy or of a physiological process

The UK-based healthcare technology industry plays a significant role in contributing to patient care, public healthcare and the national economy.  The UK medical devices industry is highly innovative, with hundreds of start-up companies and strong links with an exceptional engineering and science base. It is highly diversified and innovative, capturing a wide range of technological advances for application in the medical field.  There is considerable potential for growth in this knowledge-intensive sector.

¹Figure relates to employment by manufacturers only. Industry estimates that full employment is around 55,000.

Sources:  ONS; DIUS/BERR R&D Scoreboard; Venture Source*

* BERR became BIS, June 2009

The medical technology sector is important to the UK because:

• It is a growing sector, with a good R&D base
• It is very export focussed with a positive trade balance
• The sector has a healthy mixture of global firms (e.g. Smith & Nephew, Johnson & Johnson, Smith and Nephew) and SMEs (which form around 85% of the sector)
• It also improves quality of life for people as measured by faster recovery from illness, quicker return to work, and longer and healthier lives – raising productivity and boosting the economy.

A full set of updated metrics related to industry performance and environment was published in July 2008 and is available from the BIS website.

Industry/Government Dialogue

The Healthcare Industries Task Force (HITF) was set up in October 2003 because of the healthcare industries' wish to develop a strategic dialogue with Government.  It was a joint, year-long initiative to address a number of issues of common interest and agree solutions or improvements that would bring benefits for patients, the NHS, the national economy and industry. Lord Warner, the then Health Minister, responsible for medical devices industry sponsorship, co-chaired the Task Force with Sir Chris O'Donnell, CE of Smith & Nephew.  The task force reported in November 2004 and made a series of recommendations.

Following on from this, a HITF Strategic Implementation Group (SIG) was convened to oversee implementation of HITF outputs and was co-chaired by industry (Sir Chris O’Donnell, CEO of Smith & Nephew) and the Department of Health Minister (Lord Hunt).

The report of the SIG was published on 6 March 2007 and made six key follow-on recommendations. These included setting up a new joint group (the Ministerial Medical Technology Strategy Group – MMTSG) to develop a strategic dialogue and to take forward work on the five other SIG recommendations.

BIS (Bioscience Unit) will be leading on the delivery of two of the five SIG recommendations. These are-

• Metrics - Measurement and analysis of the UK healthcare industry environment
• SME Competitiveness - Review of barriers to competitiveness and development of a joint Government/Industry action plan to address the barriers identified

The other 3 SIG recommendations centre on-

• Procurement of technology and innovation within the NHS
• Inward Investment and International Trade
• Europe

Bioscience Unit, Healthcare Technology Team

Sponsorship of the healthcare technology industry resides with the Department of Health.

The Healthcare Technology team in the Bioscience Unit plays a major role in developing and implementing the Government's innovation and competitiveness policies as they affect the sector, working with DH and UKTI to enhance and promote the competitiveness of the UK. The team is working to develop and maintains strong relationships with companies in the healthcare technology sector and their intermediaries.  Where appropriate, it inputs into the development of government policies which impact on the sector in areas such as the long-term competitiveness in the UK, Europe and globally; R&D & manufacturing investment; Skills; IPR; Regulation; Procurement.