Medical Technologies

Medical Technologies

Medical technology companies research, develop, and manufacture devices used in the prevention, diagnosis or treatment of illness or disease, or for detecting, measuring, restoring, correcting or modifying the structure or function of the body for some health purpose. Typically, this purpose is not achieved by pharmacological, immunological, or metabolic means [5].  The industry has several distinct subsectors:

• Electro-medical or electrotherapeutic equipment, including pacemakers, hearing aids, electrocardiographs, magnetic resonance imaging and medical ultrasound devices;
• Irradiation apparatus for medical diagnostic, medical therapeutic, industrial, research and scientific evaluation including X-ray devices and computed tomography equipment;
• Surgical and medical instruments, covering anesthesia apparatus, orthopedic instruments, blood transfusion devices, syringes, hypodermic needles, and catheters;
• Surgical appliances and supplies, including artificial joints and limbs, stents, orthopedic surgical dressings, disposable surgical drapes, hydrotherapy appliances, surgical kits, rubber medical and surgical gloves, and wheelchairs;
• Dental equipment and supplies consisting of equipment, instruments and supplies used by dentists, dental hygienists and laboratories;
• In-vitro (i.e., not taken internally) diagnostic systems, including chemical, biological and radiological substances used for diagnostic tests, machines and other test devices; and
• Ophthalmic goods comprising eyeglass frames, lenses and related optical products[6]. 

U.S. exports of medical devices exceeded $45 billion in 2019 [7].  R&D spending continues to represent a high percentage of medical device industry expenditures, averaging seven percent of revenue [8].  

Innovative ways to treat and diagnose medical conditions, coupled with increasing patient life expectancy and aging populations globally bode well for future medical technology sector growth. The industry also directly and indirectly supports two million jobs across the United States [9],  and more than 80 percent of medical device manufacturers are considered small and medium-sized enterprises (SMEs) [10]. 

[5] The World Health Organization, Definition of Medical Device at https://www.who.int/medical_devices/definitions/en/.
[6] North American Industrial Classification System, 2017 Edition, pp. 202, 273, 275, 304-306.
[7] DOC Trade Policy Information System (TPIS) data run, February 24, 2020.
[8] Select USA, Medical Technology Spotlight at https://www.trade.gov/selectusa-medical-technology-industry.
[9] AdvaMed, The Value of Medtech: Medical Technology Creates Jobs at https://www.advamed.org/sites/default/files/resource/fact_sheet_medical_technology_creates_jobs_-_final.pdf
[10] Made In America Movement, The U.S. Medical Device Industry at https://www.themadeinamericamovement.com/reshoring/u-s-medical-device-industry/.