21.12.2011

Medical engineering in Germany: small firms, many patents

A recent study by SPECTARIS and Witten/Herdecke University explores innovative behaviour and obstacles.

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The German medial engineering sector has mainly small firms which, however, focus more on innovative products and developments compared to other branches:

Users of medical appliances are the major source of innovative ideas for 90 % of manufacturers. For 42 % of producers, product development in close cooperation with lead users, i.e. highly innovative users, is the norm today. Small businesses are highly innovative, with more patent applications per year compared to big corporations in relation to the number of employees. Despite regulations for development and licensing, small and medium-sized firms are represented in all risk categories.

These are some results of the study entitled “Erfolg durch Innovation: Das Innovationsmanagement der deutschen Medizintechnikhersteller” (Success through innovation: innovation management of German producers of medical applicances) co-edited by the hightech industry association SPECTARIS. Witten/Herdecke University performed the national survey as a research project called “knowmore: knowledge communities in medical engineering”; funding was provided by the Federal Ministry for Economic Affairs and Technology.

Prof. Dr. Sabine Bohnet-Joschko, project manager at UW/H: “The manufacturers attach great importance to close cooperation with users, in particular physicians. These have expert knowledge of medical procedures which is the basis for the design of innovative medical technology.” Intensive networking via communication with colleagues, at meetings, fairs and conferences is essential for the small sector to form new research and development cooperations. As a result of such informal contacts, however, small firms have less frequent cooperations (45 %) with universities and research institutions compared to corporations (73 %). The latter strive to improve chances for radical innovations through participation in basic research.

“Smaller firms may profit even more from a broader transfer of know-how and technology”, so Prof. Dr. Bohnet-Joschko’s comments on study results: “Future funding should promote cross-sectoral knowledge networks as well as participation of smaller firms in the knowledge transfer of research institutions; this is our recommendation to politicians.”

Although over one third of interviewed businesses receive public funds, the costs for product development remain a serious obstacle to innovations for about 50 %; other obstacles are regulations for medical products (40 %), and cost and effort involved in licensing new products (38 %). But the 4th amendment to regulations on medical products meets with less resistance than expected by the sector. Only 19 % of manufacturers indicate an effect of the amendment on their innovative efforts; 21 % of those interviewed opposed the amendment, while 25 % approved.

A summary of the study is available at the website SPECTARIS/Medizintechnik for Euro 50.- plus VAT. SPECTARIS members pay a reduced price of Euro 25.- plus VAT.