Insight

The history of health and medical technology (MedTech) in the UK is a prime example of the country’s commitment to advancing healthcare. From the development of early diagnostic tools and surgical instruments to the latest innovations in digital health and artificial intelligence, the UK has consistently been at the forefront of MedTech advancements. MedTech today is a field empowered by deep technology, combined with the integration of best practices of patient care and adherence to stringent regulatory compliance. Over the decades, the UK’s MedTech sector has grown exponentially, supported by strong government policies, world-class research institutions, and a dynamic ecosystem of startups and established companies.

The evolution of MedTech is marked by various initiatives aimed at accelerating innovation and improving patient outcomes across the UK. Some examples of recent UK MedTech acceleration initiatives include the NHS England MedTech Funding Mandate, which launched on 1 April 2021[1]. This policy is committed to accelerating the adoption of innovative medical devices, diagnostics, and digital products. Another significant initiative is the NIHR HealthTech Research Centres[2], initiated in April 2024 with a £41 million investment across 14 centres in England, fostering research and development in health technology. The High Value Manufacturing Catapult Innovation Centres[3] and CPI[4] also play a crucial role in supporting companies with technology concepts and commercialisation.

Scottish MedTech Context

In Scotland, the MedTech sector is rapidly expanding, with over 250 companies employing more than 9,000 individuals[5]. The industry has seen an impressive annual growth rate of 8% over the past decade. This year has been marked by several significant investments in the Scottish MedTech industry, including a £4.2M investment in Carcinotech[6], a £5M investment in Calcivis[7], and a £3.2M investment in Nami Surgical[8]. In late 2023, 1haler raised £2M to develop its single-use dry powder inhaler device[9].

In January 2024, the Medical Device Manufacturing Centre (MDMC) was awarded £3.35M in funding from Scottish Enterprise to continue supporting innovative Scottish MedTech[10]. MDMC activity in this sector is crucial as it derisks innovation by accelerating preclinical development, which would otherwise be an extremely knowledge- and capital-intensive prototyping process. The MDMC also works to consolidate the innovation network and, therefore, realise network effects in early-stage innovation processes. Another key mechanism available to industry is the Digital Health Innovation Centre (DHI) [11], whose mission is to support collaboration in co-designing person-centred digital health and care solutions across service, technical, and business innovation. Critically, InnoScot Health[12] plays a vital role in accelerating the sector by helping medical device development with a skilled team of regulatory experts who support awareness and compliance with legal responsibilities, aiding the design and development of products under an accredited regulatory framework.

Exploring Business Models in MedTech

MedTech companies are adopting various innovative business models to navigate the complexities of design, manufacture, pre-clinical and clinical assessments, and regulatory compliance. The choice of business strategy significantly impacts investment needs and support mechanisms. By understanding and leveraging these innovative business models, MedTech companies can better address the inherent challenges of the industry and drive forward the next wave of healthcare innovation.

Future Trends in the MedTech Industry

In response to the growing and ageing population living longer with more comorbidities, the focus in MedTech is shifting to themes of prevention, early detection, post-event care, and self-management. Some of the trends that can be seen in the industry are outlined below.

• Systems Thinking to Maximise Value

In modern healthcare, value maximisation extends beyond cost-saving measures. Key focus areas include optimising clinician time, remote monitoring in situ, and preventative interventions. Leveraging technology to streamline existing workflows allows clinicians to dedicate more time to direct patient care. Remote monitoring in situ enables continuous observation and treatment of patients at home, reducing the burden on healthcare facilities. Preventative interventions, supported by data analytics and predictive modelling, can identify potential health issues before they become critical and, therefore, improve patient outcomes and reduce long-term healthcare costs.

• Artificial Intelligence-Enabled Digital Health

Integrating advanced algorithms to enhance diagnostics, treatment planning, and patient monitoring is transforming healthcare. AI-enabled digital health is at the forefront of this transformation, enabling the processing of large amounts of data and correlating lifestyle factors with symptom onset or severity. AI is extensively used in diagnostics, for example in image analysis, allowing the identification of disease features earlier and with more accuracy. AI, however, also introduces challenges related to regulatory compliance. Ensuring that software used as medical devices meets stringent standards and that patient data is protected are critical concerns in this area. Further to this, digital platforms are expanding access to healthcare by enabling remote consultations and continuous patient monitoring. This trend allows patients to receive timely medical advice and care without the need for physical visits, making healthcare more accessible and convenient. Telemedicine and remote monitoring technologies are instrumental in providing comprehensive care, especially for patients in remote or underserved areas.

• Personalised Digital Biomarkers

The integration of wearable health technology with digital health systems is creating a new frontier in healthcare: personalised digital biomarkers. Wearable devices, such as smartwatches and fitness trackers, are now equipped with advanced sensors that monitor a range of health metrics in real-time, including heart rate, activity levels, sleep patterns, and blood oxygen levels. These wearables provide continuous health data, allowing for the development of personalised health profiles and treatment plans tailored to individual needs. Advances in genomic sequencing and data analytics further enhance this personalisation, enabling healthcare providers to consider genetic, environmental, and lifestyle factors. The resulting digital biomarkers help in early detection of potential health issues and enable proactive, preventive healthcare, thereby improving patient outcomes and reducing long-term healthcare costs.

Conclusions

In summary, Scotland is uniquely well-positioned to lead in the MedTech industry, building on its wealth of indigenous expertise in human medicine, engineering biology, and data science. The wealth of academic expertise in medical technology within Scottish universities contributes significantly to this growing ecosystem. Scottish support systems such as MDMC and DHIC foster collaboration and innovation, further enhancing the country’s competitive edge, and Scottish Enterprise has been announced as the second most active investor in academic spin-outs[13] in the UK, underscoring its commitment to nurturing new ventures and translating academic research into commercial success. By leveraging its rich pool of knowledge and resources, Scotland stands at the forefront in driving the future of MedTech.

As the industry trends described continue to shape the future of MedTech, the role of strategy consultants becomes increasingly important in helping organisations navigate the complex routes to impact. At Optimat, our consultants have deep expertise across these diverse technological domains, enabling us to guide and support companies and the public sector in navigating the complexities of the MedTech landscape. By leveraging our knowledge and experience, we can help unlock the full potential of MedTech innovations, driving forward the next wave of healthcare advancements and ensuring more efficient and accessible care for all.