The Centre for Sectoral Economic Performance (CSEP) is a new institute based at Imperial College and funded by the Gatsby Charitable Foundation. CSEP strives to contribute to the UK’s Economic Growth by employing rigorous academic research, the latest scientific and engineering knowledge with bottom-up business informed analysis to create innovative, meaningful and actionable sector strategies to create growth in jobs and economic value add.
CSEP analysis has shown that the UK’s HealthTech sector is one of the country’s hidden gems. The UK HealthTech Sector contributes £13.5 Billion of Gross Value Add (GVA) to the UK economy annually and, since 2016 has grown at a compound annual growth rate (CAGR) of 19%. Wages, turnover and exports associated with the sector have also grown over the 2016-2020 period at CAGR’s in the 14-19% range. Working in partnership with the Association of British HealthTech Industry (ABHI) and the broader HealthTech businesses community, an industry led strategy to further grow the sector has been created. The sector strategy contains a 6-point delivery plan, with clear actions, timelines and goals that ABHI with CSEP support have been executing this year. Roadshows have been held up and down and across the country to share the strategy and to seek further refinements and guidance from the sector.
This year, following the publication of that strategy and subsequent engagement with multiple departments across Whitehall, including briefings to policy teams and roundtables with decision-makers, it was heartening to see the Government in its landmark Life Sciences Sector Industrial Strategy incorporate three of the report’s key recommendations.
1) utilisation of the NHS as a strategic innovation partner
2) provision of greater export support for HealthTech SME’s
3) streamlining regulation and market access.
Of particular importance was the regulatory streamlining where there is an urgent need to reform the UK’s processes for regulating, approving and adopting medical technology and this was a key component of the CSEP/ABHI report. These changes will ensure that NHS patients will have access to the best life-saving technologies as soon as possible, and they also eliminate the need for duplicate approval process that introduce delays and additional costs to the sector and drive an accelerated growth of the HealthTech sector in the UK.
However, though significant and ambitious, and a welcome step from Government, demonstrating its commitment and intent with regards to the Life Sciences sector, the Life Sciences Strategy is just a roadmap. CSEP and ABHI are now engaging with Government and its relevant policy teams, as well as industry more broadly, to support the development of the implementation of the Sector Strategy and its specific proposals. CSEP researchers and academics are in regular dialogue with policy officials to provide evidence and expertise to inform the practical, real-life application of the changes that Government wants to see and will continue to carry-out cutting-edge research into the sector to monitor trends and performance metrics.
Together, these strategies signal a new era of collaborative, sustainable, and inclusive growth — where HealthTech doesn’t just treat illness, but powers national prosperity.
Authors: Dr. Nigel Steward and Professor James Moore, in collaboration with ABHI