What is the gap between China and Germany in contrast to medical devices?

Speaking of "Made in Germany", the first thing people think of is cars and machinery. In fact, Germany is also the world leader in the medical device market, from injection equipment, plastic supplies, to cutting-edge electronic measuring instruments, which are selling all over the world. The reporter of "Life Times" recently conducted a survey in Germany, hoping to find out the secret of the success of German medical devices, and find out what can be learned for the development of China's medical device industry.

Every country needs German equipment

According to the latest data from the German Federal Statistical Office, the total output value of the German medical device industry in 2012 was about 22.3 billion euros, an increase of nearly 3% over the previous year. This figure is equivalent to 8.44% of its GDP, which is much higher than the share of the national economy of the medical equipment industry in other European countries.

Viller, a medical economics expert at the German Institute for World Economics, told reporters that Germany has the world's second largest medical device industry after the United States, with more than 170 medical device manufacturers. At present, about two-thirds of the medical device products produced in Germany are exported, and the export value of products exceeds that of Japan, ranking second in the world. The largest export market is the EU, which accounts for about 40% of export earnings. The third is China, which is dominated by China, and the fastest growth rate.

The German medical devices required in each country are different. “The United States favors X-rays, MRIs, endoscopes, etc.” Viller said that they value German quality more. Countries such as Poland particularly welcome German pacemakers, dialysis machines and MRIs because of the highest standards in Germany. In the Chinese market, high-end medical equipment (such as CT, MRI, endoscope, dialysis machine, etc.) holds the latest data released by the high-end city of China's Samsung Economic Research Institute, showing that Siemens in Germany is in the CT and ultrasound equipment market in China. The share is 20.2%.

R&D efficiency is higher than the United States

The beautiful “transcripts” of German medical devices are closely related to the research and development environment. “In general, a medical device in Germany must be renewed after three years.” Viller said that Germany is the innovation center for medical technology in Europe, and that there are about 1,300 patent applications each year. The German medical device industry uses 8% of sales profits for research and development, which is twice the average value of Western countries, and the research and development efficiency is the highest. The development cost of new equipment is about 8 million to 10 million euros. The same product in the United States needs 80 million US dollars. (about 60 million euros).

Wei Haien, a technical expert at Siemens Medical Systems Group, told reporters that the group currently has representative offices in more than 120 countries, more than 20 in China, customized services and value-added services for different needs, and 24-hour spare parts. center. The annual R&D expenditure of the group exceeds 1.6 billion euros. Most of Siemens Medical Systems' products represent the highest levels in the world, such as CT machines, MRIs, angiography equipment, ultrasound scanners, and mammography machines. At the production site in Kernat, the reporter saw that the factory was completely closed and spotless. From manufacturing, assembly to system commissioning, in one go.

Policy support also promotes the development of medical devices in Germany. The German Federal Ministry of Economics and the Ministry of Health launched the “Health Economic Export Plan” to help German companies develop potential customers. The German government has also established a foundation, and the company's patents can receive 500,000 euros of health research and development funds. The German Federal Ministry of Health also has a Federal Agency for Drugs and Medical Devices, which is composed of medical experts and engineers.

However, the German "Business Daily" recently pointed out that the European debt crisis, the global economic downturn, high prices, and increasing competitors have caused German medical devices to face crisis. In particular, China has caught up in the field of low-end medical devices. For example, China Mindray has seized the share of German products in the fields of monitoring, biochemical blood tests, and ultrasound imaging. Despite this, Viller is still optimistic about emerging markets such as China, Russia and the Arab region.

Where is the gap in manufacturing in China?

Compared with the strong medical equipment in Germany, Chinese goods seem to be less popular. Xu Shan, deputy director of the International Cooperation Department of China Medical Device Industry Association, pointed out: "In domestic hospitals, the number of domestic and imported devices is basically three or seven." Bai Zhipeng, secretary general of China Medical Equipment Association, said that international brands are in the field of high-end equipment in China. The occupancy rate is close to 90%. Although some domestically produced devices perform well, there is almost no market in the top three hospitals, which can only be sold to secondary or even township hospitals. Bai Zhipeng said that Neusoft Medical's products are the best in China, with a market share of only 9%.

But Chinese medical devices still see hope. In the first half of 2012, China's medical device trade reached US$13.83 billion, ranking third in the overall decline in the world's medical device trade. Among them, Germany is the fourth largest export market, the main products are cotton wool, gauze, bandages, ventilators and weight scales. Although China's export commodities are still dominated by low-end and medium-end, with the rise of national enterprises such as Neusoft, Wandong and Anke, China has made breakthroughs in CT, nuclear magnetic and color ultrasound, and continuously reduced the profit margin of German products. Philips Medical, which once had a high price, even cooperated with Neusoft to produce low-end products. In 2012, Neusoft launched a 64-slice spiral CT, announcing that China CT has since entered the international mainstream competition.

German experience tells us that Chinese medical devices must first have their own core technologies and values. Cao Hongguang, chief scientist of TCL Medical Group, believes that the research and development of core technologies and components is difficult to accomplish by a single enterprise, and it is necessary for the state organization to focus on tackling key problems. Secondly, we must innovate in all aspects of production methods and management mechanisms. For example, Neusoft Medical adopts the “virtual manufacturing” approach, in which product development, system design, sales and service are completed by the company itself, and components are used in global procurement. Finally, the hospital should be pulled into research and development. If large hospitals can participate in the project establishment, program design and production process, not only will there be a lot of detours, but also the development of clinical norms for innovative products.

HOUSEHOLD SERIES

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