Executive Summary report Health Technologies 2013

Health Technologies Executive Summary

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Copenhagen Capacity · Nørregade 7B · DK-1165 Copenhagen K t +45 33 22 02 22 · www.copcap.com · info@copcap.com

Executive Summary Throughout the western world and large parts of Asia, demographic transitions are resulting in the growth of the care-intensive part of the population, and, simultaneously, a reduction in the size of the part of the population which provides and finances this care. In Denmark alone, the number of senior citizens over the age of 65 will increase from 900,000 in 2010 to over 1.5 million in 2040. Over the last century, Denmark has developed a health and social care system in which the government takes care of and invests in its citizens’ health and care in collaboration with the citizens themselves, the health care system, and companies. With fewer people to pay for and provide health care, but with increasing expectations at the service level, it has become vital to develop and apply new technology in health care.

Definition of health technologies Health technologies encompass technologies or intelligent systems which support everyday functions that relate to the customer´s (i.e. the person´s) health and wellbeing. Health technologies are utilized in services and products in the field of health and social care (as products and/or IT systems) and contribute to increased efficiency and quality. Health and social care encompasses, for example, public health (prevention and health), care (people with disabilities, chronic diseases, and the elderly), and medical treatment. Health technologies aim to enhance the safety, security, social networking in everyday life, and the general mobility of the person. Health technologies are aimed at people who potentially and actually have a particular need for health services, i.e. people with chronic diseases, disabilities of various kinds, and people in need of rehabilitation.

The present study has been carried out on behalf of “SPI”, a collaborative project involving Copenhagen Capacity and 15 municipalities in the Capital Region. The report has identified 238 innovative health technology companies in the Capital Region. The findings of the report are based on a questionnaire survey conducted with the companies, statistics from Statistics Denmark, and 70 qualitative interviews with companies and actors in the region.

The report focuses on strengths within the health technology industry in the Capital Region.

It has been analyzed in terms of the following: Business Foundation, Culture & Collaboration, The Market, Education & Talent, R&D and Innovation, and Ownership.

The overall annual revenue of the health tech companies in the Capital Region is 47 billion Danish kroner. Annual exports bring in approximately 15 billion DKK. It is estimated that 45% of the revenue derives directly from health technology. The companies are active in such markets as Denmark, Europe, the USA, and Canada, but are expecting growth in the BRIC countries, Japan, and others in near future.

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Strongholds in health technology innovation in the Capital Region

There is a strong project culture in Denmark and the Capital Region which foreign companies looking for collaboration find appealing. It is easy to conduct projects because of the combination of numerous sources of public funding, an open-minded attitude towards different stakeholders, an interactive and collaborative setting, and experience in public-private innovation partnerships (PPI).

Collaborative projects are characterized by the innovative enthusiasm of all the partners, which include both private actors such as hospitals and municipalities, private companies, knowledge institutions such as universities, and the users of health technologies – care personnel and ordinary people.

Projects benefit from the low organizational barriers in the Danish business community.

Both private companies and public organizations place great importance on gathering input from across professional hierarchies and backgrounds. This consolidates development potential within health technology as, for example, the voice of the social and health care assistant as well as the chief surgeon are heard in the process of development.

In general, the Capital Region is considered attractive in terms of education and talent. 79% of the companies who took part in the questionnaire survey believe they have access to the competences they need. However, one in five still recruits internationally.

3 areas within health technology unique to Denmark Health technology in Denmark is mainly directed towards the public sector, which creates stable demand for suppliers to the market. New technologies are creating new opportunities, and new companies are being formed to meet the potential of the Danish health care system.

Three areas of health technology are highlighted in the report as being unique to Denmark, based on the participation of public actors such as hospitals and municipalities, private companies, and the users of health technology, i.e. ordinary people.

Telehealth Health technologies within telehealth cover a wide range of products and solutions. The main purpose is to ease communication between care personnel or between patients and care personnel.

The market is benefitting from knowledge created by extensive health programmes and the use of social security numbers (CPR) in Denmark, which has rendered possible the compilation of data regarding disease, illness, and the general state of health amongst the population. The Danish health data register is thus truly unique.

Moreover, the citizen service centres provide world-class service and advice both directly and online. There is a high acceptance of telehealth solutions amongst the Danish population.

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Testing and pilots Denmark has already established itself as an international testing location for the smart grid industry. In testing and developing health care technology, the Capital Region has shown itself to be an attractive location due to its highly qualified employees and extensive knowledge base. The entrepreneurial culture is strong, and both public and private actors are willing to collaborate in testing and making prototypes. Both hospitals and universities take an active part in developing new technologies in collaboration with private partners, which serves as a major asset to the industry.

Rehab Rehab focuses on people with disabilities and involves both rehabilitation and care provided in the person’s own home. Rehab covers both people suffering from short-term disabilities after a spell of ill health, and people with permanent disabilities.

The Danish health care system is promoting “healthy living and assisted living” in an effort to include and empower the population, bring down costs, and to ease strenuous workloads for care personnel.

People receive help and guidance in maintaining an independent and active life, and in preventing lifestyle diseases. The main objective is an ethical standpoint: that every single individual should be free to treat their own body and exercise their will in any way they like.

Thus, the individual citizen is the focus of attention. By enabling self-help, public costs for care personnel are brought down.

Also, many health technologies focus on the working conditions of care personnel by innovating and introducing technologies which ease or eliminate heavy lifting and other tasks involving repetitive strain (and thereby Repetitive Strain Injury, RSI). By doing so, money lost to sick days and/or early retirement is reduced as well.

Research and development of new health technologies is carried out in collaboration between public partners, such as hospitals and universities, and private companies, with qualified feedback from users who are interested in new technologies. New health technologies thus benefit public partners, ordinary people, health care personnel, and private companies.

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Highlights of 9 strengths in health technology in the Capital Region 1 It is easy to carry out pilot projects in Denmark. There is both the interest and experience in starting up projects. The projects are supported by national funding such as from The Market Development Fund (Markedsmodningsfonden) and The HighTech Fund (Højteknologifonden).

6 User-focused innovation. The users are involved in the development, testing, and evaluation of products and services. User-focused innovation stems either from regular focus group meetings or from other forms of qualified feedback from the users.

2 Both private and public actors are interested in collaboration. There are collaborative development projects involving private companies at every hospital.

7 Denmark has a flat organizational hierarchy. In both public and private companies there is a flat organizational structure.

This enables collaboration across professions and hierarchies. The knowledge and experience of both scientists, technicians, chief surgeons, and social and health care assistants are considered in the development of the best products and solutions.

3 Foreign companies participate in public-private innovation (PPI). This has the potential to provide access to the Danish market.

4 The companies are good at making mock ups (prototypes). For example, products from the medico industry, plastics and IT software are assembled and used in new ways.

5 In hospitals the focus is placed on the patient. Among doctors and health care personnel, there is a strong professional and social awareness. The focus is on the patient’s experience and not the economic costs of one treatment or another.

Health care staff take part in projects of professional interest and not for personal gain. This is a strong driver of projects and innovation.

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8 Health technology in Denmark is founded on a social approach which supports maintaining an active lifestyle, regardless of age or disability. This acts as a driver of innovation and product development, e.g. in rehab and hospital services, because of the demand for products of high quality in these areas.

9 Good work environment. There has traditionally been a focus on the work environment of employees and on avoiding burnout amongst care personnel. This has created demand for lifts, adjustable beds, etc., which has been instrumental in making the rehab industry an export success.