Feature Article

 

Not only is the West Midlands the heartland of Britain, but it is also the beating heart of the country’s vibrant medical technology industry. That is the conclusion of a recent report funded by the Department for Business, Innovation & Skills (BIS), UK Trade & Investment and the Department of Health.

 

Titled Strength and Opportunity, the report outlines the medical technology sector’s unique position as a viable means to address the UK’s future healthcare challenges through innovation, design and manufacturing. It also focuses on the West Midlands as a region comprising the UK’s highest number of medical technology companies. The region has quickly emerged from its metal bashing roots and evolved into a vibrant market for fresh product design and manufacturing solutions, not least of all in medical technology.

 

One example, cited in the report, shows the West Midlands commanding the highest proportion of companies developing technologies for assisted living. This is a paramount activity, given the challenges presented by an ageing population, not least for the NHS. Moreover, the team that drafted the report feels that high tech industries attached to the £15 billion life sciences sector will play a key role in building a stronger UK economy.

 

The UK med-tech industry consists of 2771 companies that generate £10.6 billion in turnover and employ 52,000 people in mostly small to medium size enterprises (SMEs). The industry is predicted to witness global growth of around 10% over the next five to six years, according to the BIS report.

 

The report also finds the West Midlands performing well in another life sciences sector – medical biotechnology. Despite representing a small share of the market, the West Midlands has the highest proportion of medical biotechnology companies turning over in excess of £1 million, showing its companies are thriving on sizeable contracts and projects.

The UK is currently pipelining one in five Europe-based medical biotechnology products in trials, using therapeutic proteins, antibodies, DNA and also small molecule drugs, according to the report’s authors.

 

In partnership with the regional development agency (RDA) Advantage West Midlands, MedilinkWM delivers a range of services to the active West Midlands Medical Technology Cluster, enabling associates to access the latest field data, research facilities and partners, both within the NHS and universities.

 

The success of the collaborations makes the cluster pivotal to better healthcare, not only within the region but throughout the country and beyond, into markets where its products and services are making a real difference to healthcare delivery.

Support from an RDA like Advantage West Midlands is the only way that organisations like MedilinkWM can hope to further the aims of the UK’s medical technology sector. In the West Midlands, the emphasis of our partnership focuses on the fields of assistive living, digital healthcare, human engineering and the control of infectious diseases. These markets were chosen as all of them have forecasted growth and are matched with the region’s industrial strengths and research capabilities.

 

One advocate of the relationship between RDAs and industries such as medical technology is Mike Healey of Malvern-based Automated Packaging Systems. He is in no doubt about the importance of their involvement. “Such investment and support in the medical technologies sector represents a great opportunity for businesses like ours. It allows us to get access to new markets and develop new products, which is what we need to see a growth in both our business and the sector.”

 

As government policy moves towards the promotion of life sciences in a global market, the West Midlands Cluster is taking a proactive lead through innovative initiatives including the online Voice of Industry Campaign, which received backing from Lord Drayson in 2009.

 

Life sciences and medical devices, in particular, need to be taken seriously by government and sponsored by Business Innovation and Skills, as are the majority of industries. Initiatives such as i4i and many of the TSB, BIS and RDA funding programmes are welcomed by industry. However, cumbersome UK bureaucracy coupled with EU requirements mean that many of these initiatives that are predominantly targeted at SMEs have to be delivered by universities and other public bodies. They in turn have to recover large overhead costs resulting in a lot of the money never directly benefiting companies.

 

The NHS through strategic health authorities (SHAs) should encourage and allow brokerage between the regional NHS innovation community and the industrial innovation community. This would allow for new products and services to be developed, which will assist the healthcare system to deliver services safely, efficiently and at a lower overall cost.

 

A mechanism at a regional level should be found for exposing challenges and problems in the healthcare system to the industrial research and development community to explore potential solutions such as the national HCAI process at SHA level.

 

Many new initiatives such as the strengthening of NICE in medical technology terms brought about by the Ministerial Medical Technology Strategy Group and the Innovation Pass through the work of the Office for Life Sciences should enhance the innovation adoption landscape. However, because SMEs represent 98% of UK medical technology companies, they missed out on many of the recent government innovation initiatives targeting larger firms. Consequently some of the bodies established to work at a smaller, more regionalised level are now threatened or being closed.

 

For the existing medical technology industry in the UK to improve its operations, products and services, the key issue is access to finance. These companies need to be given the means to invest in expertise, research, knowledge, data and design. Access to finance outside the existing economic climate is often only available for new company formation and new product and technology development, on the basis that these new companies will create more economic value and jobs.

 

The NHS needs to understand that commissioning medical technology does not drive up healthcare costs. In fact, it fosters productivity and quality that the NHS needs in the current climate. This is borne out by recent work conducted by the Office of National Statistics, which strongly suggests that medical technology enables productivity benefits.

 

If access to finance can be improved, what else needs to change? Clinical input into the commissioning and purchase of medical technologies should be reprioritised and appropriate relationships with industry facilitated. The NHS should scan the horizon for new technologies and implement long-term plans, not use short-scale budget cycles as an excuse for the rejection of new technologies and service redesigns.

 

NHS payment systems such as the national tariff and payments by results should have the flexibility to be used as a stimulus to innovation and the use of medical technologies. By the same token, the NHS and its subcontracted and arms length organisations should not allow unreasonable payment delays to jeopardise the financial security of the SMEs that provide products and services.

 

Tapping into this emerging market, the West Midlands Medical Technologies Cluster is poised to take full advantage of opportunities for economic growth. The companies involved will only thrive if funding bodies recognise the importance of ongoing investment in collaborative research and development. Through such partnerships, the short and medium term technology needs of our healthcare providers may be future-proofed.

 

 

As MedilinkWM CEO, Tony Davis’ fundamental role is to advise the government on the viability of commercial initiatives and to gauge their real-world relevance for the medical industry. He enjoys advisory roles within BERR and DIUS, is the chair of Medilink UK and is on the boards of dozens of influential industry groups and committees. During a long, eclectic career that has included taking the helm at high street titans, establishing a respected think tank, operating his own successful firms and entering the healthcare sector through voluntary work, Davis has amassed a unique array of skills and experience.