NEW YORK, June 1, 2016 /PRNewswire/ -- According to Kalorama Information, research and development spending continued to be a high percentage of revenue for most device companies. The healthcare market research firm tracks major device companies and publishes a yearly report on the state of the medical device industry. Kalorama found R&D spending as a percent averages at 6.7% of revenue, an insignificant change from the last five years of its report. This compares favorably with other industries. The seventh edition of the healthcare market researcher's report, The Global Market for Medical Devices, covers the broad range of the medical device market, commenting on these and other drivers of the overall market.
The Global Market for Medical Devices, 7th Edition, can be found at Kalorama Information: http://www.kaloramainformation.com/Global-Medical-Devices-10058730/.
"Device companies live and die by the innovative products they develop, so you'll continue to see a healthy device R&D spend," said Bruce Carlson, Publisher of Kalorama Information. "There was some discussion that reimbursement changes or the medical device tax while in place might affect spending."
Instead, Carlson says, a medical device terms revenue is the greatest indicator of how much they will spend on product development.
Compared to industrial industries (1.5%), automotive (4%), defense (4.5%) or telecom (1.7%), the medical device industry invests more of its yearly revenues into product innovation. This reflects the competitive nature of the industry and the need to keep innovating to be selected by hospitals and payors, and to best competitors with legacy products. Customers in healthcare will generally switch a product only if it is lower cost or if it can save money in other ways, such as reducing patient days or improving outcomes.
The only industries that outspend device firms, Kalorama says, are pharmaceuticals and technology companies.
The seventh edition of Kalorama Information's Global Market for Medical Devices contains: an overview of medical devices and their regulation in several world markets; market size estimates and forecasts to 2020 for the global market, the United States market, and several country markets, including China, Japan, India Brazil, Germany, Canada and other nations; an index of bellwether device companies; markets for specific categories of medical devices; a look at market drivers and limiters; and company profiles of major device concerns.
The Global Market for Medical Devices, 7th Edition, can be found at Kalorama Information: http://www.kaloramainformation.com/Global-Medical-Devices-10058730/.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's and are also available on www.marketresearch.com and www.profound.com.
We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.
Contact:
Bruce Carlson
(212) 807-2622
[email protected]
www.KaloramaInformation.com
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SOURCE Kalorama Information
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