MPMN_Medical Product Manufacturing News

Medical Product Manufacturing News, November/December 2015

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M E D I C A L P R O D U C T M A N U F A C T U R I N G N E W S Q M E D . C O M / M P M N 2 4 N O V E M B E R / D E C E M B E R 2 0 1 5 Which U.S. State Is Best for Medtech? MPMN takes a look at the data and its most recent reporting when it comes to this question: Which U.S. state is really the best for medtech companies? Chris Newmarker and Brian Buntz W e've all heard the stereotypes: California is a medtech innovation hotbed. Massachusetts has cutting edge research and Yankee ingenuity. And Minnesotans wake up earlier and work longer hours than everyone else as the state punches above its weight. This year, our readers ranked California as the best medtech state, with Minnesota and Massachusetts coming in second and third respectively. But what's the truth when it comes to the United States' three major medical device hubs? And are other states catching up? SPECIAL FEATURE: ENGINEERING INSIGHT Minnesota Minnesota's history in medtech stretches back to the middle of the last century. The roots of the state's Medical Alley are even highlighted in a Smithsonian exhibit. The state is presently home to the likes of Medtronic (which still has its operational headquarters there), St. Jude Medical, and Mayo Clinic. According to Newsweek in 2010, 22% of employees in the greater Twin Cities work in the medical technology sector. That figure represents a larger percentage than tech workers in the Bay Area (21%). The state has a history of clinicians who have been involved in medical device development. The state also has a strong network of suppliers, including Digi-Key, one of the largest distributors of electronic parts. The state also boasts a strong infrastructure of suppliers to the medical device industry and strong support from state politicians. On a more critical note, the state lacks the funding climate that has historically benefitted medtech startups in places like California and Massachusetts. Still, there is plenty of focus in the region through trade group LifeScience Alley and others when it comes to preserving and even enhancing this important medical device industry hub. 1 California Sure, California has its problems. But the state is still unparalleled when it comes to sheer size, boasting more medical device companies and workers—by far—than any other. The state's device industry is considerably bigger than that of Minnesota and Massachusetts. In fact, California has multiple big device hubs. To the south, San Diego is emerging as a leader when it comes to wireless medical technologies. Orange County has long been one of the biggest medical device clusters in the country. Silicon Valley has its own advantages, too, leading the nation when it comes to venture capital funding. In recent months, Apple and Google, both of which are based in Silicon Valley, have shown increased interest in medical innovations. While a number of medtech companies are leaving the state, looking for greener pastures, the talented workforce present in the state will likely secure it as the U.S. leader for some time. 2 Medical Device Manufacturing Employment, 2013: 63,307 Medical Device Patents, 2009–2013: 10,061 Medtech VC Investing, 2014: $1.2B NIH Funding, 2014: $3.4B Medical Device Establishments: 1039 Medical Device Manufacturing Employment, 2013: 28,141 Medical Device Patents, 2009–2013: 4269 Medtech VC Investing, 2014: $234M NIH Funding, 2014: $497M Medical Device Establishments, 2012: 308

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