Medical device manufacturers are investing more on breakthrough innovation compared to other manufacturers from different sectors.
This is according to a global survey titled International Global Manufacturing Outlook 2015-conducted by Forbes for KPMG-which polled 386 senior executives, including 55 executives in the medical device sector.
The survey also revealed that almost a quarter of respondents in the medical device industry are spending more than six percent of revenues in research and development (R&D) in the last two years.
In the pursuit of innovation, 80 percent of the respondents said they are seeking "partnerships rather than in-house efforts."
"More than other manufacturing sectors, medical devices have a special stake in innovation. The nature of the business requires companies to elevate their performance to offer better life-enhancing and life-saving technologies," said Tan Wah Yeow, Head of Asia Pacific Healthcare practice at KPMG in Singapore.
In essence, the survey suggests medical device manufacturers to embrace innovative collaboration in order to develop breakthrough products.
As such, it is important to partner with companies who can bring in advanced knowledge and capabilities such as telecom companies who have expertise in enabling better connectivity on smart healthcare devices; insurers and government who can enable broader data collection and analytic techniques and help in developing data dictionaries; and IT companies who can contribute in propelling advances in healthcare-related hardware and software.
"It is imperative that medical device companies, especially smaller, low-cost manufacturers in Singapore develop breakthrough products through collaboration to stimulate growth and remain competitive in the industry. Compared to larger companies, these companies are more adaptable, better able to identify market niches and have more innovative potential," said Ajay Kumar Sanganeria, Life Sciences Partner at KPMG in Singapore.
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