Innovation in the Face of All Odds
The Importance of Investment, Startups, and an Innovation-Friendly Environment for the Medical Technology Sector in Germany
The German medical technology sector is internationally competitive. Thanks to its innovative, high-quality products, the industry is able to generate consistently strong growth in revenue and employment, thereby making a significant contribution to value creation in the healthcare sector and the economy as a whole. Innovative solutions are either developed in-house by established companies and startups or “purchased” through strategic investments, such as equity stakes or acquisitions. The “Innovation Against All Odds” thematic spotlight, researched by Whitechart on behalf of SPECTARIS, describes investment behavior in the German, European, and U.S. medical technology markets. Both young and established companies are examined. It shows that investments in medical technology companies have become significantly more substantial in recent years, and that the “digital products and services” sector, in particular, is highly attractive to investors. Support for startups comes primarily from investors within the national market. Established companies are increasingly being bought and sold by investors from their own region (EU, U.S.). With one exception: Chinese investors are increasingly active worldwide and on the lookout for investment opportunities in the healthcare sector. The study shows that the framework conditions in Germany for medical technology manufacturers, innovation, and investment are unfavorable—due, among other things, to complex regulations and a lack of incentives for innovation—and that urgent action is needed to avoid falling behind the competition.
The industry's innovative capacity is threatened by regulatory hurdles and a lack of incentives
New publication from the industry association SPECTARIS highlights an urgent need for action / hospital investment financing also needs to be scrutinized
The German medical technology sector is internationally competitive: Local companies account for 10 percent of the global medtech market. Germany also ranks among the leaders in European patents, with more than 1,200 applications filed in 2020; only the U.S. is more innovative. Compared to Europe, however, the U.S. invests more than twice as much per capita in medical technology. This makes the U.S. market—which is already an exciting prospect simply due to its size—even more attractive to investors, startups, and highly qualified inventors and other skilled professionals, resulting in more than 5,500 U.S. medical technology patent applications annually in Europe alone.
According to the industry association SPECTARIS, the framework conditions for innovation must be significantly improved so that the medical technology sector in Germany can maintain its leading position, minimize the outflow of expertise, and ensure that its capacity for innovation is not further jeopardized. Dr. Martin Leonhard, Chair of Medical Technology at SPECTARIS, sees a need for action at both the European and federal levels: “The European regulatory approval process for medical devices under the new Medical Devices Regulation must be streamlined. With regard to the reimbursement system here in Germany, access to new diagnostic and treatment methods—which rely heavily on medical devices—must be accelerated and simplified so they can be incorporated into standard care. This includes a dedicated framework for evaluating medtech methods with faster approval and reimbursement processes that takes into account the unique characteristics of medical devices with short innovation cycles, as well as other dimensions of benefit beyond patient benefit.” In addition, he says, the financing of hospital investments needs to be reviewed. As part of an innovation initiative—replacing old medical equipment with modern, innovative medical technology—the federal government should specifically reward and support those federal states that fulfill their investment commitments to hospitals.
New data from the “Innovation Against All Odds” thematic spotlight—compiled by the market research and consulting firm Whitechart on behalf of SPECTARIS—also demonstrates that these measures must be implemented urgently. The publication describes investment patterns in the German, European, and U.S. healthcare markets, as well as the influence of startups on innovation. “Innovative solutions in medical technology are primarily developed by established companies or startups, or knowledge is acquired through strategic investments, such as equity stakes or acquisitions. The field of digitalization stands out clearly in this context, with a great deal of research and investment currently taking place in this area,” explains Leonhard. U.S. investors focus primarily on the domestic market, while Asian investors are looking for exciting investment opportunities worldwide.
Frank Altmeyer, CEO of Whitechart, believes that investors and those seeking capital also have a responsibility when it comes to the domestic market: “Germany needs bold investors and companies that are willing to invest. This is the only way to attract and retain many founders. Investors must be made even more aware than before of the opportunities in the German healthcare market and invited to engage in dialogue. Investments in the healthcare market mean sustainability and stability, but they require patience. An investor must exercise more patience in the medical technology market than in other industries.” He also considers simplifications on the regulatory side of the healthcare system to be urgently needed. Altmeyer continues: “Until that happens, however, those seeking funding should be honest and not draw up exaggerated business plans just to impress investors. Sustainable, stable, but with a longer time horizon: that’s how investments in the medical technology market can best be described.”
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What Our Members Say
SPECTARIS acts as a strong association that vigorously represents the interests of its members in the political, business, and social spheres.
“SPECTARIS acts as a strong association that vigorously represents its members’ interests in the political, business, and social spheres. As members, we have the opportunity to actively raise our concerns and help shape the agenda to ensure that our voice is heard in relevant political and social discussions. In addition, through SPECTARIS, we have access to a broad network of companies, experts, and decision-makers from the high-tech industry. This allows us to forge valuable contacts and leverage synergies. Through this exchange, we and other members can benefit from each other’s experiences and expertise.”
Frank-Martin Rammelt, Managing Director of seleon GmbH
Together, we are strong.
Together we are strong—That is why we value the strong network and the open and excellent collaboration within the association, which allows us, as one of the leading manufacturers, to work together on solutions to the modern challenges in the contact lens industry, to collaborate on joint campaigns, and to capitalize on identified trends.
Johannes Zupfer, General Manager for Germany, Austria, and Switzerland, CooperVision GmbH
Advancing Photonics
Photonics is one of the most innovative key industries and places high demands on the organizations that represent its interests. SPECTARIS meets these demands in a compelling manner. As a strong industry association, SPECTARIS effectively represents the interests of its members in the political, business, and social spheres, while also promoting exchange and networking within the industry. We thank SPECTARIS for this commitment and greatly value our trusting collaboration.
Dr. Ralf Kuschnereit, JENOPTIK AG
OBE relies on high-quality products “Made in Germany.”
OBE relies on high-quality products “Made in Germany.” Thanks to innovation and automation, spring hinges and security screws can be manufactured in large quantities at the Ispringen facility. This goes hand in hand with increased productivity and a division of labor for simple products at our facility in China. In this way, we secure jobs in Germany.
Peter Specht / Erik Schäfer - Managing Directors, OBE
Community makes us strong!
For us as medium-sized companies, the SPECTARIS association serves as a bridge between the government and our interests—our collective strength makes us stronger! We appreciate the very helpful continuing education program in the field of medical technology and benefit from the organization of a wide variety of delegation trips. Our membership in SPECTARIS also ensures that we receive regular updates on new regulatory requirements.
Maik Greiser, Managing Partner / CEO, ATMOS MedizinTechnik GmbH & Co. KG
The association offers services that are perfectly tailored to our needs.
Our industry association, SPECTARIS, is a strong advocate for the interests of medium-sized, owner-managed companies like ours. It is just as important to us that the association provides a platform for open dialogue among member companies and offers services—such as industry reports and events focused on specific topics—that are perfectly tailored to our needs.
Managing Partners of Jüke Systemtechnik GmbH, Martin Hovestadt (left) and Heinrich Jürgens (right)
A Voice for Medical Technology
For us as a medical technology manufacturer, SPECTARIS serves as an important voice in our dealings with policymakers. Especially in light of the current MDR, it is immensely important to have a strong and effective association to represent our interests. We are very satisfied with our collaboration and feel well represented.
Regina Kirchner-Gottschalk, Managing Director of KaWe – KIRCHNER & WILHELM GmbH + Co. KG
Innovation drives us forward
Demands are growing, markets are changing—but innovation opens up new paths for us. With digital progress, bold ideas, and modern processes, we are shaping the standards of tomorrow. As a SPECTARIS member, we leverage the strength of the network to actively shape the future in this dynamic environment.
Fabian Bohnen, COO / Stephan Börner, CEO, Ofa Bamberg GmbH
What we particularly appreciate about SPECTARIS is its technical expertise.
As a medium-sized medical technology company, Richard Wolf benefits greatly from SPECTARIS’s extensive network. We particularly value their technical expertise.
Management of Richard Wolf GmbH: Mr. Pfab, Mr. Steinbeck
It's worth getting involved!
In times of rapid and far-reaching changes in the medtech industry and a challenging regulatory environment, SPECTARIS is an important partner for our company and plays an indispensable role as an advocate for our interests in Berlin and Brussels. It’s worth getting involved!
Bert Sutter, Managing Director, Sutter Medizintechnik GmbH
We want to be a trusted partner for our laboratory customers, both today and in the future.
SPECTARIS’s in-depth information on industry and technology trends, as well as the regulatory landscape, is just as important to us as its advocacy work in Berlin and Brussels. The dedicated SPECTARIS team is always a great point of contact for us.
Dr. Christoph Schöler, Managing Partner, BRAND GMBH + CO KG, VACUUBRAND GMBH + CO KG
A voice for the industry
In a diverse and specialized industry such as analytical technology—which is highly technical and subject to numerous regulatory requirements—small specialists compete with large technology conglomerates. SPECTARIS succeeds in uniting the interests of all its members and serves as the industry’s collective voice and advocate.
Albrecht Sieper, Managing Director of Elementar Analysensysteme GmbH
SPECTARIS is the ideal platform.
SPECTARIS provides us with the ideal platform for constructive dialogue with member companies and serves as a reliable voice for the laboratory industry in the realms of politics and science.
Dr. Gunther Wobser, Managing Partner of LAUDA DR. R. WOBSER GMBH & CO. KG
SPECTARIS fosters collaboration in our industry.
“The very informative discussions at SPECTARIS in Berlin and here at our office convinced me of SPECTARIS’s commitment and the quality of its work. In particular, the opportunity to combine topics from analytical, biotechnology, and laboratory technology with the field of medical technology is very interesting for Sigma,” I wrote upon joining in 2011. This has been confirmed, and today we are actively involved in several working groups.
Dr. Michael Sander, Managing Director of Sigma Laborzentrifugen GmbH
National advocacy group puts the spotlight on the industry
Laser Components benefits from the industry association in a variety of ways. As a company, we value the broad exchange of information within the working groups—whether in human resources, marketing, or export control, customs, and foreign trade practices. For our industry, Spectaris also serves as a political voice—the Photonics Trade Association not only maintains constant communication with the BMWi and BMBF ministries but also provides information on European initiatives.
Patrick Paul, Managing Director of LASER COMPONENTS GmbH
A Voice for Innovative Small and Medium-Sized Businesses
In the century of the photon, we need an advocacy group that is both strong and responsive. For us, as providers and consultants for the most innovative products on the global photonics market, this institution is particularly important. We know our interests (e.g., in the area of foreign trade) are in good hands, and we can focus on what matters most: satisfying our customers.
Andreas Börner, Managing Director of Laser 2000 GmbH
Our membership in the SPECTARIS industry association is of great value to us.
It not only gives us access to a strong network of leading companies across various high-tech industries, but also provides an important platform for professional exchange and continuing education. In addition, we benefit from the association’s strong advocacy with policymakers, the business community, and society at large, which plays a crucial role in creating a sustainable framework for the future. Through our membership in SPECTARIS, we can contribute our expertise, address current developments at an early stage, and jointly drive innovation and sustainable growth.
Frank Billhardt, Laser Protection Division EMEA, LASERVISION GmbH & Co. KG
