Germany needs an innovative and robust healthcare sector as a leading industry

However, it is falling behind in an international comparison: while investment in research and development in the pharmaceutical industry in the USA increased 8-fold overall between 1990 and 2019, it only increased 4.5-fold in Europe. And the proportion of value creation from Europe will continue to fall compared to other regions of the world, driven by sometimes counterproductive national and European regulations. But right now, Germany needs more investment in modern research and production facilities, an efficient infrastructure and well-trained specialists. The "Healthy Industrial Policy - Progress Dialogue" series of events discussed how these goals can be achieved. The initiators compiled the results in a position paper, which was presented at the closing event on 18 September 2023 and discussed with representatives from companies, IGBCE and politics.

Securing and strengthening Germany as a business location means reacting to changes in global economic structures and supply chains, exploiting the opportunities of digitalisation and at the same time mastering decarbonisation and demographic challenges. The country is competing internationally for investment, research projects and skilled labour in one of the most innovative areas of industry. The companies in the industrial healthcare sector are working daily with their partner, the IGBCE, to remain competitive and become stronger. They work together every day to promote Germany as a business location in the global competition for investment and location decisions. The industrial healthcare sector has built up a future-proof and crisis-proof industry thanks to its entrepreneurial willingness to take risks and its committed, well-trained and highly motivated workforce. It has developed into a leading industry with great appeal, which makes a decisive contribution to the future viability and security of Germany's social security systems with its added value.

To keep it that way, a genuine culture of welcoming innovation is needed in Germany. The prerequisites for this are:

An industrial strategy for the healthcare industry

Germany needs a holistic strategy that sees the industrial healthcare sector as a leading industry. It should take up findings from research, technology and digitalisation, weigh up the opportunities and risks and derive targeted measures for a healthy industrial policy for the industrial healthcare sector in Germany. Reliable framework conditions are essential for the research, production and innovation location. Germany must be an attractive location for private investment and venture capitalists. How this can be achieved must be worked out under the leadership of the Federal Government in a transparent dialogue with decision-makers and all relevant stakeholders. Because healthcare policy is also economic policy.

Skilled labour as a driver of innovation

Innovations start in people's minds. Skilled workers are therefore a decisive competitive factor for an innovative healthcare industry. Germany needs to invest in the development, recruitment and retention of skilled labour. At the same time, bureaucratic barriers to the immigration of skilled workers must be dismantled and a clear culture of welcome established.

Modern and pragmatic data management

Data is a valuable asset. Especially when it comes to health data, security is a top priority. Data quality is also of crucial importance for research. This means that uniform and secure standards must be created for the quality and use of data as well as an interoperable data ecosystem for needs-based patient care and equal access to data for university, non-university and private sector stakeholders.

Reduction of bureaucracy, speedy planning procedures, seamless funding chain

Scientific and medical research are in international competition. In order to survive here, it is important to have efficient planning procedures, less bureaucracy, harmonisation of regulations and better staffing of supervisory authorities. In terms of financing, the numerous, isolated public funding programmes and sources for biotechnological research and development should be bundled and - flanked by private capital - linked to form a seamless financing chain across all stages of value creation.

Reliable framework conditions for a highly innovative leading industry in Germany and Europe

A strategic partnership between all players is necessary for a strong European healthcare industry. In close cooperation with the German government and in dialogue with companies and social partners, the EU is thus securing and strengthening Europe as a location for research and production. This can ensure predictable, innovation- and patient-oriented framework conditions by strengthening patent protection, accelerating approval and market access procedures, harmonising cost-benefit procedures for pricing (so-called HTA processes) and rewarding innovations.

In order for this transformation to succeed and for an important economic sector such as the industrial healthcare industry to be further strengthened, a corporatist approach is required in which politicians, companies, social partners and works councils are involved as practitioners. This is what the dialogue on progress stands for. 

The objectives of these demands are a strong healthcare industry and the dynamic development of the future field of biotechnology. With their innovative strength and added value, both contribute to ensuring that patients receive the best and most modern healthcare. In doing so, they are making an essential contribution to a healthy and resilient society in Germany. At the same time, they provide a strong impetus for innovation, value creation, exports and the strengthening of ecosystems along the entire value chain.

¨ber "Healthy Industrial Policy - Progress Dialogue"

"Healthy Industrial Policy - Progress Dialogue" is a series of events initiated by the IGBCE and the pharmaceutical companies Amgen GmbH, Bayer AG, Boehringer Ingelheim Deutschland GmbH, Gilead Science GmbH, GlaxoSmithKline GmbH & Co KG, Novartis Pharma GmbH and Roche Pharma AG. It is under the patronage of Gabriele Katzmarek, Member of the German Bundestag, Parliamentary Secretary of the SPD parliamentary group and member of the Economic Affairs Committee.

Press release from "volksfreund" dated 19 September 2023