The next five years will see a 50% increase in R&D health technology spending in the UK and the creation of 50,000 skilled jobs, according to a new report from the Association of British HealthTech Industries in collaboration with Imperial College London.
The report concludes that HealthTech is the “hidden gem” of the UK economy, with its contribution comparable to the biopharmaceutical sector at £13bn in gross value added. Despite this, its potential for growth is being stymied by capital shortages, skills shortages, and uncertainties from Brexit.
Policy proposals
The report proposes a range of things, including the recognition of regulatory approvals from the US Food and Drug Administration, EU, and other trusted jurisdictions – this will encourage organisations to invest in NHS clinical trials and ensure the demographic of participants reflects that of the UK. Other initiatives include:
- reforming taxes to enhance R&D investment;
- establishing a formal network of support to increase productivity; and
- expanding the ABHI’s international accelerator programme to boost exports.
The report also forecasts a doubling of sector GVA over the next 10 years.
A pragmatic and achievable route
The foreword for the report was written by Lord Darzi – the author of the recent investigation into the NHS.
“Augmenting a vibrant life sciences sector will offer not only innovations but develop of enterprise and professionals. Above all, a revitalised NHS will offer our patients lives lived to the full, rather than overshadowed by disease,” he said.
“The HealthTech industry will be pivotal to realising this potential.”
He concluded: “The strategy laid out in this report provides a pragmatic and achievable route to delivering on the value offered by the HealthTech sector. Streamlined regulation stands to promote greater investment in clinical trials. Incentivisation targeted at encouraging entrepreneurialism will promote skills development.
“Financial incentives will attract R&D and onshore capabilities. Public-private partnerships will support the development of talent. Individually these policies will drive innovation. Applied in concert they will build a HealthTech sector that will be the lifeblood of a reinvigorated NHS that provides health, wealth and growth for generations to come.”
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