October 5th, 2007
Will U.S. retain medical technology edge?
The flip side of our high cost medical establishment is the opportunity it affords to entrepreneurs. (Animated .gif from HSCC Ltd. of Noida, near Delhi in India.)
America has a lot of medical entrepreneurs, who are inspirations to their colleagues around the world.
What’s at stake was discussed in a report from the Lewin Group at this week’s AdvaMed conference in Washington:
The Lewin Group notes that as part of the U.S. economy in 2006, the
medical technology industry employed 357,700 workers, paid $21.5 billion in
salaries, and shipped $123 billion worth of products. The report also found
that each medical technology job generates an additional 4.5 jobs across
the nation.
How long will this remain an export market? A new agreement with India could be the first step toward moving production overseas, as has happened in so many markets the U.S. once dominated. Other companies, like Sweden’s Sandvik, are looking to India for low-cost production of products like medical implants.
Already, U.S. producers of medical technology face serious competition from Europe, including Siemens, whose medical solutions unit reported sales of about $12 billion last year.
This worry about where things come from may seem crass, but in order to afford the best medical care we need a vibrant, export-driven medical technology sector. Will it deliver?
Dana Blankenhorn has been a business journalist since 1978, and has covered technology since 1982. He launched the Interactive Age Daily, the first daily coverage of the Internet to launch with a magazine, in September 1994. See his full profile and disclosure of his industry affiliations.
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| 10/06/07
