2020 was the most funded year in history for medical technology, beating 2019 by 55% even with the pandemic, so it’s a great time to work in the medtech and digital health fields. Here are the areas that should be on your radar if you’re considering a move into the industry.
Cash often dictates the top locations for medtech and digital health more than any other indicator, and more of this is being spent in fewer, more concentrated clusters across the states. These areas bring together a mix of prestigious educational institutes and strong healthcare systems, and are home to companies that bring in millions of dollars of capital investment each year.
Insights from PwC suggest that this year we can expect to see the fields of robotics, wearables, genomics and diagnostics bring in a huge amount of investment and dictate M&A agreements.
San Francisco, California
Owing to the 3,000+ biotech and medical device firms that call it home, the area of San Francisco, San Jose and the surrounding areas of northern California is known as Biotech Bay, and has almost 100,000 life science professionals working within its borders making an average salary of $164,123.
The tech sector has long been making major advances in this area, so it’s a natural hotbed for medical technology firms too. The area leads in terms of innovation with more patents filed than anywhere else in the US, and in 2019 ranked highest for VC investment in digital health, bringing in $2.7b of capital funding.
New York City, New York
Back in 2016 NYC announced a $500m deal to establish itself as a world-leader in life science R&D, and since then has cemented itself as a global leader in bioinnovation. In neighbouring New Jersey, you’ll find major corporations such as BMS, J&J and Novartis, but NYC itself has attracted a number of digital and medtech startups in recent years.
New York State is now second to California when it comes to digital health VC funding. In the first half of 2020 alone $1.5b of capital investment went to the NY digital health sector, surpassing 2019 by 25%, with the largest deals among firms dealing in healthcare analytics, telemedicine and patient engagement platforms.
The number of start-ups established and headquartered here creates a huge amount of opportunity for professionals, and together with New Jersey the states rank #1 for job opportunity within the US.
A hotbed of innovation and drug development, over 600 biotech, medtech, medical device and pharmaceutical companies call Boston and its surrounding areas home.
Funding levels have shown uninterrupted growth in the last decade, and total investment to companies in the city has broken the billion-dollar threshold every year since 2013, hitting a peak of $8b in 2019. Among this list Massachusetts is the only state that showed a significant increase in the amount of VC funding to digital health firms from 2018 to 2019, with a 37% increase from $704m to $1,033m.
High-calibre universities and local research institutions like Harvard, MIT and Tufts provide the city with a strong pipeline of future innovators. It’s estimated over 700,000 professionals with backgrounds in biology, biomedical sciences and engineering reside in Boston and its surrounding counties.
San Diego, California
With California housing 10% of the worlds’ top 100 universities, it’s unsurprising that it isn’t just northern California making its mark on the digital health and medical technology industry.
Southern California, specifically San Diego but also LA and Orange County, is home to around 1,400 health technology firms. The average wage is a little lower than upstate, coming in at $127,345, but opportunity is rife with the industry employing more than 140,000 people.
Raleigh-Durham, North Carolina
Anchored by three major universities, North Carolina State, Duke and University of North Carolina, is the region referred to as the Research Triangle. More than 500 life science firms operate in the area, and thanks to the formation of IQVIA the area is known as the birthplace of the CRO.
But CROs and multinationals aren’t the only companies booming in Research Triangle; cutting-edge cell therapy companies and ground-breaking medical technology firms are examples of the type of companies that have established themselves in the area over the last decade. Innovation, education and a culture of collaboration are key drivers of the area’s success, and we can expect it become increasingly associated with cutting-edge medical technology in the coming years.