While the terms healthtech and medtech may seem synonymous, the fact is that there is more than a subtle difference. The World Health Organization (WHO) defines healthtech as the application of medical knowledge and skills in the form of devices, medicines, vaccines, procedures and systems developed to solve a health problem and improve people’s quality of life. Medtech, on the other hand, refers to more niche, ‘hands-on’, ‘cure-based’ systems used within the healthcare sector. Fitness wearables are a popular healthtech vertical, whereas drug-releasing heart stents fall within the medtech segment.

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Data says

Over the last few years, the centre of innovation for medtech has been shifting from the US and Europe towards Asia – with India, China and Singapore emerging as the key hubs. According to a recent report from StartUp Health, a US-based healthcare consultancy, the industry is beginning to see more action emerging in cities like Beijing (China) and Bengaluru, (India).

Incidentally, around 80 per cent of healthcare startups in Asia, industry studies show, are concentrated in five countries: India (32 per cent), China (22 per cent), Singapore (11 per cent), Japan (eight per cent) and Australia (eight per cent). Indonesia, Malaysia, Philippines and Vietnam are also making inroads into the growing market.

Advantage Asia

While there are numerous factors driving medtech innovation in Asia, the Asian Development Bank (ADB) attributes the growing trend to two primary elements: First, the increasingly prevalent broadband coverage and mobile data across the region. In fact, Southeast Asia was the fastest-growing region worldwide in unique internet, mobile and social media users in 2018.

The second factor contributing to Asia’s medtech growth is a shift in disease profiles, with changing lifestyles, increasing incomes and aging populations, “putting pressure on how healthcare is delivered”. In other words, Asians are demanding state-of-the-art healthcare services, on par with their Western counterparts.

Things to do

The stage is set. However, for Asia to realise its true potential and become the centre of innovation for medtech, there are measures that need to be taken. Here’s looking at three top things on the agenda:

*Formulate proactive policies

Government initiatives like ‘Made in China 2025’ and ‘Healthy China 2030’, for instance, have encouraged medtech innovation in the country. China’s restructuring of the distribution systems for drugs and devices have also facilitated its favourable position in the medtech space.

Last year, China developed its first drug-releasing heart stent, and there has been no dearth of funding as well as research partnerships with local universities, medtech firms and hospitals. With the Zhangjiang Pharma Valley shaping into a global hub and digital technology companies, such as Alibaba, announcing new healthcare ventures, the medtech industry in China is booming. Other Asian countries can learn from the China example.

*Encourage FDI inflows

It’s best when the Ministry of Health (MOH) sets funding priorities and develops an ecosystem that fosters public-private collaborations. India and China are shining examples of efforts made in this regard. In 2018, the two Asian countries ranked among the top 10 global destinations for foreign direct investment (FDI) inflows, according to United Nations Conference on Trade and Development (UNCTAD).

Investors remain keenly interested in Asia, with startups envisioning great opportunities in the growing medtech market. Growing FDI inflows in developing Asian countries can give a fillip to the healthcare sector.

*Ensure better regulations

The general lack of regulation and governance in most Asian countries is common knowledge. Even then, incidents like the CRISPR babies (gene-edited babies) controversy that originated in a Chinese university last year cast a shadow of doubt over Asia’s ability to rightfully claim the top spot in innovation.

Apart from pertinent issues about ethics, such medical debates call attention to the bending of international norms in Asian countries. Unless we have robust regulation systems in place – on par with global standards – and transparent governance, even the best of healthcare systems in the world, like Singapore, cannot inspire confidence in the medtech industry.