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Opportunities and Growth: Medical Technologies in the Leeds City Region

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Opportunities and Growth: Medical Technologies in the Leeds City Region Opportunities and Growth: Medical Technologies in the Leeds City Region A Science and Innovation Audit sponsored by Dept for Business, Energy and Industrial Strategy. Chapter 1: Introduction 03 1 1.1 Leeds City Region 04 1.2 Medical Technologies Science & Innovation Audit (Leeds City Region) 07 Chapter 2: Strengths in Science and Innovation 08 2.1 Excellence in science and research 09 2 2.2 Innovation strengths and growth points 10 2.3 Business environment 14 Chapter 3: Medical Technologies in the Leeds City Region 16 3.1 National and international trends and size 3 of global markets 17 3.2 Local science and innovation assets 21 3.3 Local science and innovation talent 28 3.4 National and international engagement 30 3.5 Developments in the wider funding landscape 32 Chapter 4: Conclusions 34 4.1 Gap analysis and barriers to growth 35 4 4.2 Our strategic propositions and targeted opportunities 38 Appendix 1: Contributors 42 Appendix 2: Case studies 52 Contents ■ 2 Vision Medical The UK will be the best place in technologies* the world to develop and launch innovative medical devices and The global market for medical technologies was diagnostics – contributing to a estimated to be worth $317bn in 2015. Driven by social, economic, technological and political substantial increase in economic factors, including a growing ageing population growth and productivity, reduced and the global need for an active and healthy healthcare costs and improved older workforce, this is forecast to grow to patient outcomes. $529.8bn by 20221. There is an opportunity for the UK to Our ambition is to deliver successful innovation substantially grow this industry sector and its through concentration, convergence and smart global market share. However, the window specialisation in a single geography, the Leeds of opportunity is imminent and there is an City Region, aligned with national centres urgent need for strategic intervention nationally of excellence in science and technology and and regionally. substantial growth in an already established UK-wide network of academic, clinical and According to the Office for Life Sciences, industrial collaboration. 115,000 people are employed in the UK medical technology sector and service Taking advantage of projected growth in global and supply chain, which generates medtech markets, focusing in particular on £21bn turnover2. technology convergence, we will increase UK economic output, productivity and exports. However, the UK medtech sector is highly Investments in clinical evaluation and fragmented. SMEs with fewer than 250 multidisciplinary skills will be supported by employees make up 98% of UK medtech continuous innovation across the value chain. companies, and 82% have less than £5m turnover3. Despite geographical concentrations Targeted investment in medical technologies of medtech companies – notably in the Leeds as a sector priority promises to tackle low City Region, the South East and the Midlands productivity in the Leeds City Region. However, – there is a lack of business-to-business investment to support the Leeds City Region in networking and pre-competitive collaboration. a leadership capacity, as a driving force for medical technologies innovation across the UK, will deliver sustainable economic growth in the sector nationally. * Healthcare technology excluding pharmaceuticals 1http://info.evaluategroup.com/rs/607-YGS-364/images/mt-wp16.pdf 2https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/525102/bis-16-237-strength-and-opportunity- 2015-UK-medical-and-biopharmaceutical-landscape.pdf 3https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/525102/bis-16-237-strength-and-opportunity- 2015-UK-medical-and-biopharmaceutical-landscape.pdf 1 3 ■ 1.1 Leeds City Region In terms of Gross Value Added • The proportion of people with higher levels The Leeds City Region hosts a distinctive (GVA), Leeds City Region skills and qualifications in the Leeds City concentration of over 250 businesses Region is lower than the national average. specialising in medical technologies, represents the largest economic In 2016, 31% of the Leeds City Region’s complemented by over 200 digital and area in the UK outside London workforce had achieved NVQ4+ qualifications, technology businesses operating in the health and the South East, generating compared to 38% in the UK overall11. and social care space. It hosts some of the £65bn GVA. A population of leading medical device manufacturing and Medical technologies in the digital health companies in the UK, including the 3 million, of whom 1.9 million are Global Development and Technology Centre for of working age (2015), and over Leeds City Region DePuy Synthes, a Johnson & Johnson company, 120,000 businesses (Business RSL Steeper, Brandon Medical, TPP and EMIS. Leeds City Region has Counts 2016), make the Leeds a concentration of knowledge- The Leeds City Region has distinctive City Region an economy of based innovative health longitudinal patient population cohorts (such international significance5. sciences organisations, as Born in Bradford) and the unique ‘Leeds alongside broader healthcare industries Care Record’, which has been developed in Leeds City Region is at the heart of the UK’s and recognised strengths in digital health conjunction with leading healthcare software advanced manufacturing and engineering innovation and the manufacture of medical companies TPP and EMIS. It is host to four industry, and over 140,000 manufacturing jobs and dental instruments: out of five NHS headquarters, 13 clinical 12 are based in the region (ONS Business Register commissioning groups and 12 NHS trusts . and Employment Survey, 2015)6. • Its public sector assets – hospitals and universities… double up as assets for the Moreover, the Leeds City Region has established With nine higher education institutions and 14 private sector; it is also home to NHS a world-leading concentration of excellence in further education colleges, the Leeds City Region England and the NHS Digital research and innovation in medical technologies represents one of the largest concentrations of in the Universities of Leeds, Bradford, education facilities in Europe. • It is home to medical equipment Huddersfield, Leeds Beckett and York. Funding manufacturers such as Brandon for medical technology research in the Leeds 13 Leeds City Region’s universities are home to Medical, Smith and Nephew, and DePuy City Region exceeds £100m , and accounts for over 115,000 students7 (HESA, 2015/16), and International Ltd; leading pharmaceutical more than 8% of all EPSRC medtech funding, provide in the region of 40,000 graduates each companies Thornton & Ross and Galpharm with major national medtech research and year. These graduates feed into the largest (International) Ltd); research-driven innovation centres. science, research, engineering and technology analytical service companies such as workforce outside of London – in 2015, 101,000 Covance, Unilabs, EMIS and TPP; tissue 8.9% of medtech patents submitted by people were employed in science, research, repair companies Tissue Regenix Group plc UK inventors have originated in the Leeds 14 engineering and technology in the Leeds and Neotherix City Region . City Region8. • Major assets include the Medical The Leeds City Region hosts 22% of UK digital 15 However, the Leeds City Region faces a number Technologies Innovation and Knowledge health technology jobs . of economic challenges: Centre at Leeds University; plus Medipex Healthcare Innovation Hub and Medilink • Productivity levels, although comparable to (Yorkshire & Humber) connecting the other northern cities, are significantly lower NHS with industry and academia (Health than the national average (GVA per hour Innovation: Breathing Life into the Northern worked was £27.8 compared with £31.8 Powerhouse, IPPR North 2016). nationally in 2015)9. • The rate of employment remains below the national average (73.2% compared with 74% nationally in 2016)10. 4https://www.ons.gov.uk/economy/grossvalueaddedgva/datasets/gvaforlocalenterprisepartnerships 12http://investleedscityregion.com/system/files/upload - 5https://www.nomisweb.co.uk/reports/lmp/lep/1925185551/report.aspx?town=leeds#tabrespop ed_files/Med-Tech%20Brochure.pdf 6https://www.nomisweb.co.uk/reports/lmp/lep/1925185551/report.aspx?town=leeds 13IKC Annual Report 2017 7https://www.hesa.ac.uk/data-and-analysis/key-tables 14European Patent Office data, PATSTAT, for the period 8 ONS Business Register and Employment Survey: 2004-2014 https://www.nomisweb.co.uk/reports/lmp/lep/1925185551/report.aspx?town=leeds 15https://www.gov.uk/government/uploads/system/up- 9GVA per hour worked indices; Local Enterprise Partnerships, 2004 – 2015 https://www.ons.gov.uk/ loads/attachment_data/file/525102/bis-16-237-strength- employmentandlabourmarket/peopleinwork/labourproductivity/datasets/subregionalproductivitylabourpro- and-opportunity-2015-UK-medical-and-biopharmaceuti- ductivitygvaperhourworkedandgvaperfilledjobindicesbylocalenterprisepartnership cal-landscape.pdf 10https://www.nomisweb.co.uk/reports/lmp/lep/1925185551/report.aspx?town=leeds#tabrespop 11ONS Annual Population Survey (2016) https://www.nomisweb.co.uk/reports/lmp/lep/1925185551/report.aspx?town=leeds#tabempocc ■ 4 CHAPTER 1 The largest economic area in the UK outside of London Generating More than £65bn 120,000 8.9% of medtech GVA businesses patents submitted by UK inventors have originated in the Leeds City Region14. The Leeds City Region hosts 22% of UK digital health
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