Building on medtech success will help shape the future of healthcare

Ireland is home to a vibrant medical device sector acknowledged as a global hub. But how did it emerge and what needs to be done to ensure its continued success?

“Our global medtech hub is over a century in the making,” says Ciara Finlay, senior executive at Ibec’s Irish Medtech Association. ‘While Johnson & Johnson have been in Ireland since the 1930s and Abbott established commercial operations here in the 1940s, IDA Ireland’s establishment saw a steady increase in investment to Ireland. Then if we travel through time to the late 90s, we see an explosion of start-ups succeed after Enterprise Ireland was created.”

When Finlay joined the Irish Medtech Association in 2015 the industry here spanned 350 companies, with €8.5 billion in exports, employing 27,000 people. Less than a decade later it has grown to 450 companies, with more than €13 billion in exports, employing 48,000 people.

“Not only have we seen over €1 billion in investments and an additional 3,430 jobs publicly announced by FDI multinationals in the sector in less than two years, €156 million in funding has been raised to help dynamic start-ups grow,” she adds.

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There is now enormous synergy between FDI multinationals, home-grown SMEs and centres such as BioInnovate Ireland, Health Innovation Hub Ireland and Cúram supporting innovation and collaboration.

“Bringing senior business leaders together with key opinion leaders and policymakers is vital to ensure that the industry here has the foresight needed to achieve its ambition of transforming lives with innovative patient-centred medtech,” says Finlay.

However, she says that although industry has invested heavily in R&D to shape the future of healthcare, with new technologies and continuous development, “more needs to be done at a Government level and we are advocating for the formation of a national health technology strategy”.

The biopharma, medtech and digital health sectors span more than 700 companies, employing 102,000 people directly, with exports in excess of €120 billion.

“We cannot afford to be complacent because of our proud history in medtech success. If we get this right, not only will we grow the Irish economy, we can also shape the future of global healthcare,” adds Finlay.

Talent is also key to the sector’s success. “Critically, Ireland offers a rich talent pool of third-level graduates and dynamic supports for upskilling” says Ann O’Connell Irish Medtech Skillnet network manager. “Ireland has one of the largest shares of tertiary education, with 47 per cent of 25- 64-year-olds having third-level degrees. And it continues to invest in lifelong learning through programmes like Skillnet, apprenticeships and Springboard, to upskill and reskill the Irish workforce, ensuring our knowledge economy stays ahead of the latest trends.”

She adds: “We cannot assume that our past is an indicator of our future and that the pace of growth will continue. The market is increasingly competitive and establishing a world-class talent pipeline is essential for determining Ireland’s success as a future location for business.”

With its industry-led training model, Skillnet has a clear role to play. “Challenges become opportunities if you and your people are ready for it,” says O’Connell.

“Historically – and this continues – our government policies are very open, very pro-business and we are a very stable country‚” says Sophie Frederix, partner in Arthur Cox’s Corporate and M&A group, and venture capital and growth equity practice lead.

“The policies the government has put in place for such things as R&D tax credits, as well as the historically low corporate tax – now moving to 15 per cent for those who qualify but still comparatively low – have all driven investment into Ireland, to the point that nine of the top 10 medtechs in the world have bases here.”

Post-Brexit, Ireland is the only English-speaking country in the EU, which puts us in a unique position, Frederix adds.

“We’re also a very loyal and dedicated member of the EU, which also adds to our stability,” she says.

To maintain our strong position in what is a globally competitive sector, Ireland must remain “best in class” in everything that it does, she says. That includes embracing the digitalisation of health and the more personalised services it can provide.

Keeping abreast of changes in legislation is also vital. The forthcoming Representative Actions Act paves the way for consumers to join together to take cases through yet to be established “qualified entities”.

Although this will impact a range of sectors, it could have a bearing on medical devices too, including smart ones. It’s part of an EU initiative to harmonise representative action procedures across all EU member states, Frederix’s colleague Joanelle O’Cleirigh, also a partner at law firm Arthur Cox, explains.

It doesn’t provide any new rights for consumers but it does provide “a new mechanism for litigation”, she points out.

Currently Ireland has very limited frameworks for collective litigation. The act will give consumers more options and allows for both domestic and cross-border litigation. Third-party funding of civil litigation is tightly controlled here. As yet, it remains unclear who will fund these High Court-approved ‘qualified entities’, says O’Cleirigh.

Ireland has a number of companies selling expert services into the medtech sector, from legal services to construction.

Kildare-based Schneider Electric Ireland, part of a global group, has a wealth of experience and expertise in the sector. Its recent partnership with Brandon Medical resulted in the creation of the new Medicontrol Intelligent Theatre Control Panel.

Chris Collins, country president, Schneider Electric Ireland, believes the big challenge for Irish medtech is to stay innovative and maintain its position.

“We feel strongly that we have a role to play in maintaining and delivering further on the promise of Irish medtech, not least by helping it remain competitive in terms of operational efficiency, sustainability and regulatory compliance. [This is] where our digital transformation technologies and extensive expertise can help improve efficiency, productivity and product quality while reducing costs,” he says.

“By focusing on sustainability, agility, cost efficiency and compliance, we empower Irish medtech companies to excel in an increasingly competitive landscape and build upon the success of the cluster for many years to come.”