Bridging the Gap: The Role of Finance and IP in MedTech Innovation and Access
July 18, 2024
Finance and intellectual property (IP) play a significant role in fostering medical technology (MedTech) innovation and access. We interviewed Carla Ricchetti, Global Sector Lead for MedTech at the International Finance Corporation (IFC), to understand how these factors can help bridge the healthcare gap and create more MedTech innovation.
Finance and IP are key factors in the development of the MedTech ecosystem. Finance enables the development of new medical technologies, the scaling up of production, and the expansion of distribution networks. IP serves as the engine of progress, providing incentives for innovation by ensuring that inventors can protect their inventions. Strong IP rights also facilitate collaboration between universities, research institutions, and private companies within the MedTech sector.
Despite significant advances in medical science and technology, stark contrast in health equities continue to exist. This disparity manifests in differences in the quality, accessibility, and affordability of healthcare services across different regions around the world. Developed economies typically have access to more advanced medical facilities, more comprehensive healthcare systems, and more robust funding mechanisms, while low- and medium-income countries (LMICs) often struggle with inadequate infrastructure, limited access to essential medicines, and a shortage of healthcare professionals and medical devices.
of MedTech at the International Finance
Corporation
In this article, we interview Carla Ricchetti, the Global Sector Lead for MedTech at IFC, to discuss the pivotal roles that finance and IP play in bridging these gaps and enhancing global health outcomes.
Carla leverages her extensive international background to drive positive change. Throughout her career, she has had the opportunity to visit and work in nearly 100 countries, leading projects and teams in both Climatech and MedTech.
Why is it important to have a strong private sector in developing countries, especially for MedTech?
A strong and vibrant private sector is important for developing countries. Private businesses act as the engine of economic growth, creating jobs, increasing income, and raising living standards. Growing private businesses contributes poverty reduction and improvements in the overall economic climate. A robust private sector can translate to faster adoption of new technologies and practices, promoting productivity and economic strength.
Building a robust global MedTech industry is crucial as it strengthens healthcare resilience worldwide. Historically, around 80% of MedTech companies were based in developed countries and tended to focus innovation on products for developed markets. However, there is growing demand for products that cater to the unique challenges and needs of developing countries, emphasizing local usability and relevance. A well-developed MedTech private sector is a source of jobs and income, and a way to increase quality of life and extend life expectancy.
With over US$9 billion invested in developing countries’ healthcare, IFC supports the MedTech private sector and helps to address health inequities in developing countries by bridging the demand-supply gap, strengthening health systems, and anticipating future health challenges. IFC’s investments attract additional capital by reducing perceived risks for other investors, amplifying the impact of the original investments. Additionally, by supporting environmentally and socially responsible enterprises, IFC promotes sustainable development that balances economic growth with environmental protection and social equity.
How does a country’s approach to IP reflect its overall product development ecosystem and influence access and innovation?
A robust IP ecosystem is crucial for fostering innovation, attracting investments, ensuring fair competition, and supporting economic growth. A country’s IP ecosystem and an organization’s IP portfolio are always at the core of IFC risk assessments during due diligence and help to shape our investment decisions.
A country’s IP framework impacts the overall status of that country's product and technology development ecosystem in several ways: it safeguards inventions and stimulates investment in research and development. This is crucial for MedTech, health tech and life science. A mature IP framework also attracts domestic and international partners to invest in companies, nurturing a dynamic environment for technology development.
Such a framework not only encourages greater investments but also provides secure protection and enforcement measures for investors. Additionally, it strengthens the ecosystem, fostering stronger startups and an environment conducive to innovation.
A strong IP framework also ensures fair competition by preventing unauthorized use of proprietary technologies, and enables monetization of inventions, leading to new industries and economic expansion. This is essential for MedTech because it facilitates technology transfer from multinational companies, enhances local capabilities, and shows a commitment to a structured and reliable environment for business and innovation.
What are you most excited about in the future of MedTech Innovation and Access in Developing Countries?
I’m excited about the combination of MedTech and digital health! It has a great potential for transforming healthcare delivery, enhancing patient outcomes, promoting efficiency, and democratizing access to quality healthcare services worldwide. It also represents a pivotal moment in the evolution of healthcare towards more integrated, data-driven, and patient-centric approaches. I see this integration shaping MedTech innovation and access in developing countries in several ways:
First, data-driven insights: Health tech leverages big data analytics and artificial intelligence (AI) to derive valuable insights from medical data. When combined with MedTech devices that generate real-time health metrics, this data can inform clinical decision-making, personalize treatments, and facilitate preventive healthcare measures.
Second, technologies: By introducing innovative solutions like telemedicine, digital health platforms, portable ultrasounds, and AI-powered diagnostics, the integration between MedTech and Health Tech can enhance healthcare accessibility, efficiency, and quality – vital in addressing health challenges.
And third, the climate and health interplay: Portable diagnostic tools for diseases like malaria, dengue fever, and cholera (which are increasingly prevalent due to climate change) could enable rapid diagnosis in remote or disaster-affected areas, hence potentially saving lives.
This interview has been edited for length and clarity.
WIPO and MedTech
The interplay between finance and intellectual property is crucial in ensuring health equity and fostering MedTech innovation and access. Finance plays a pivotal role in supporting medical research, innovation, and infrastructure development. A robust IP ecosystem promotes health equity by safeguarding inventions, stimulating investment in research and development, and ensuring fair competition.
WIPO supports development of IP ecosystems by studying factors that drive successful MedTech innovation and access, improving understanding of patent landscapes, and providing IP focused technical assistance as needed, to name just a few. By supporting innovators, governments, and organizations, WIPO and the IFC both help bridge the healthcare access gap and ultimately contribute to a more equitable and accessible healthcare landscape for all.