23-January-2012

Indiana is home to the fifth largest medical device industry in the nation, which generates more than $10 billion annually, according to the report "From Hearts to Hips: Indiana's Leadership in Medical Devices" issued by BioCrossroads and FaegreBD Consulting, a division of Faegre Baker Daniels. The report is the first of its kind to exclusively study the life sciences sector, the Indianapolis Star and Medical Design Technology reported.

The study found that the medical device sector accounts for more than 40 percent of life sciences jobs in Indiana and employs more than 20,000 people. Many who work in this industry are employed by small companies scattered across the state in places not typically thought of as medical device industry strongholds.

"From small towns to larger cities, the economic impact of the medical devices industry is significant and is well distributed throughout the state," said David Johnson, counsel at Faegre Baker Daniels and president of BioCrossroads. "This report is proof that Indiana's medical devices sector is robust and resides on a solid foundation that positions us well for future growth," he told Medical Design Technology. 

"There are still many external factors like the economic, regulatory and health care reform environment that pose real challenges for this industry," Johnson added. "This makes it hard to start a business in the sector now. If you are a really small company and have a slim to no budget, these factors become more serious and more difficult."

If new companies are adversely impacted by national policies and problems, industry growth will be stunted, he said.

The nature of Indiana's workforce poses an additional challenge for the industry. Johnson said the report demonstrated that many working in the Indiana medical device industry have little education beyond high school or an associate degree.

"There's really good news and really challenging news in that," Johnson told the Indianapolis Star. "It's a more accessible component of the industry for more Hoosiers. The challenging news is that the skills required to work in this sector are going up, and as a state we haven't thought enough about that."

"Indiana's medical device industry is a cornerstone to the state's life sciences sector and the state's economy overall," said Dave Zook, partner at Faegre Baker Daniels and chair of FaegreBD Consulting. "There are several looming challenges that, if unaddressed, will significantly weaken the industry and the state's economy.