Dr. Patrick Dümmler

Hier Bild platzieren(weisser Balken bleibt nur bei Partner-Logo)

Rückblick 2010 / Ausblick 2011.

IX Swiss Turkish Economic Forum – Innovation through Clustering.

Dr. Patrick Dümmler, Istanbul, Dec. 10.

An Introduction into the Theory of Clusters –

The Swiss Medtech Industry as an Example.

Agenda

1. In a nutshell – Cluster theory and definition

2. The example of the Swiss medtech industry

3. Growing a cluster or letting a cluster grow

The cluster concept can be traced back to two main

authors

Source: Adapted from Dümmler (2005), Lasuén picture from congreso.es, Porter picture from visionary.management.com.ua, diamond illustration from docstoc.com.

“A growth pole

consists of “a set of

highly interrelated

activities (sectoral

cluster) highly

concentrated over

the territory

(geographical

cluster).”

1) LASUÉN, JOSÉ RAMON (1973): Urbanisation and Development – The temporal Interaction between Geographical and Sectoral Clusters

2) PORTER, MICHAEL E. (1990): The Competitive Advantage of Nations

Lasuén1) Porter2) Porter’s diamond of national advantage

1. Cluster theory and definition

Knowledge spillovers are an essential ingredient for a

successful and dynamic cluster.

Source: Adapted from Dümmler (2005).

• “The marginal cost of

transmitting knowledge

rises with distance”

(Audretsch)

• “Intellectual breakthroughs

must cross hallways and

streets more easily than

oceans and continents”

(Glaeser et al.)

1) Not to be mixed up with information. Information can be transmitted globally at almost no costs via

internet

Knowledge1) Spillovers• Knowledge spills over –

Knowledge spillovers are

regionally limited

• The flow of knowledge is

embedded in regional

labor networks

• Spillovers lead to more

competition – higher

innovation rate and early

adoption of new knowledge


The three dimensions of the Cluster Cube form the

basis for the cluster definition.

Source: Adapted from Dümmler (2005).

Interactions

Spillovers

Distance

Close Far

Different

value

chains

Low

Intense

Same

value

chain

The Cluster Cube

A cluster is

• a spatially concentrated

agglomeration of actors

like service providers,

industrial companies and

institutions

• that are active in the same

value chain,

• form a network by the

exchange of services, goods

or knowledge,

• benefit from spatially limited

spillovers that have a

positive impact on

innovation output and

regional growth


A strong Swiss medtech industry –

Key facts & figures.

CHF

Number of companies: 1,600

850 suppliers and

manufacturers

750 service providers and

traders & distributors

Turnover and growth: Positive

Total turnover EUR 10.2bn

(CHF 12.5bn)

Significant growth, +5.9%

(2012) and +6.6% (2013e)

Employees: Growing

Grown from 49,000 (2009) to

more than 51,000 (2011)

1.1% of Swiss workforce work

in medtech

Research & Development: High

Manufacturers spend 13% of

their turnover on R&D while

suppliers spend 8%.

On average half of the product

portfolio is less than 5 years old

Exports: Substantial

Manufacturers export EUR

7.2bn (CHF 8.8bn) (5.5% total

Swiss exports)

20% to the total of the Swiss

trade surplus from medtech

Source: Survey among 321 medtech companies based in Switzerland (SMTI 2012).


Switzerland is highly attractive for international

medtech companies.1)

No. Company2)

Sub-section of marketHead-

quarters

Employees in

Switzerland

Global sales

2011

[CHF m]

1 J&J MedicalOrthopaedics, neurosurgery,

cardiology, surgeryUSA 4,500 25,570

2Roche

DiagnosticsIn-vitro diagnostics CH 2,110 9,700

3 Medtronic

Implants to treat cardiac rhythm,

cardiovascular and neurological

diseases and spinal disorder3)

USA 1,200 15,787

4 Sonova Hearing systems CH 1,200 1,620

5 Zimmer Orthopaedics USA 950 4,370

6 B. BraunOrthopaedics, hospital aids and

devicesDE 940 5,530

7 Straumann Dental implants CH 830 694

8 Ypsomed Injection systems CH 800 249

9 Stryker Orthopaedics USA 650 7,200

Source: Annual company reports and press offices, SMTI 2012.

1) Approximately, manufacturers only, figures for reporting year 2011/12, exchange rates used: 0.9693 USD/CHF2) The authors believe that among the 10 biggest medtech employers Hamilton Medical should also be listed. However, Hamilton Medical is not willing to

communicate any company data3) Swiss made devices only


Switzerland has a strong medical technology cluster.

BioAlps / Greater

Geneva Berne

Area

Berne Capital

Area

Basel Area Greater Zurich

Area

Biopolo

Ticino

Total 1,600 medtech

companies in

Switzerland

Watch making

industry

Mechanical

engineering

industry

Source: Adapted from a survey among 321 medtech companies based in Switzerland (SMTI 2012).


Switzerland has a complete value chain in

medtech…

Examples of specialized companies and organizations as part of the value chain

Source: Logos copyright of respective companies/organizations.


…based on a strong innovation system.

Source: Logos copyright of respective companies/organizations.

Examples of specialized organizations in the Swiss medtech innovation system


The Swiss medtech industry is embedded in a unique

ecosystem.


Adjacent industries

Technical &

Commercial

Talent Pool

SWISS MEDTECH ECOSYSTEM [illustrative] COMMENTS

Core Medtech Industry

HEALTH-

CARE

POLICY &

REIMBURS

EMENT

Mechanical

engineering

The Swiss medtech industry is

embedded in a unique ecosystem. Its

main success factors are:

Collaboration, long-term

relationships and quality

dedication

Sharing the same culture, mindset

and approach of doing business

domestically and across borders

High number of family owned

SMEs with a long-term

perspective

Travelling times are short, high

degree of spatial proximity

MANU-

FACTURERSSUPPLIERS

UNIVERSITY

R&D/EDUCATION

TRADERS &

DISTRIBUTORS

SERVICE

PROVIDERS

HEALTHCARE

PROVIDERS

Medical

Talent Pool

ElectronicsWatch makingPharma/

Biotech

FINANCING

& INSURANCE

SUPPORT

ORGANIZATIONS

Source: SMTI 2012.

Eight clear assets help to nurture the Swiss medtech

cluster.


Stable political

environment

Free and open job market

especially for talent and

management skills

Highly qualified personnel

Cutting-edge research1) at

hospitals and universities

Highly capable suppliers

in close proximity

Favorable tax systemAttractive living conditions

and infrastructure

“Swiss made“ quality

Source: SMTI 2012.

Straumann – Origin of two globally leading companies.

Source: Straumann.com, DePuy Synthes, Wikipedia.

1954 Reinhard Straumann founded the Dr. Ing. R. Straumann

Research Institute AG. Until 1970, the company specialized in

materials testing and alloys for timing instruments.

1960 The Swiss Association for the Study of Internal Fixation

(AO/ASIF) is looking for a company that is capable of

providing materials for internal fixation implants. A few years

later Straumann begins with the manufacturing of

osteosynthesis implants.

1974 The first dental implants are developed at Straumann and

undergo successful clinical testing at the University of

Berne.

1990 Management buy-out of the osteosynthesis division, creation

of Stratec (subsequently DePuy Synthes) as a separate

company.

Beginning of the Straumann Group focused exclusively on

dental implants.

Today DePuySynthes: 18’000 employees, USD 10bn turnover

Straumann 2’400 employees, EUR 580m turnover

Prof. Reinhard Straumann


Hocoma – Success with innovation and local networks.

Source: Hocoma.com.

1996 Funding of the company by two electrical and biomedical

engineers and an economist. Start of the development of a

automated treadmill training.

2000 Market maturity of the Lokomat that was developed in

cooperation with the Balgrist University Hospital Zurich.

2004 CEO Gery Colombo is awarded by EY with the Entrepreneur

of the Year Award.

2005 Enlarging of the product portfolio, focus on robotic

rehabilitation therapy for neurological movement disorders.

2012 Hocoma and the ETH Zurich win the most prestigious prize in

European robotics, the Technology Transfer Award for the

successful technology transfer among science and industry

that lead to the launch of the ArmeoPower end of 2011.

Today 150 people work for Hocoma, the company has subsidiaries in

the U.S., Singapore and Slowenia.

Dr. Peter Hostettler

Dr. Gery Colombo

Dr. Matthias Jörg


Two main groups of clusters reflect two different

approaches to clustering.

Cluster

characteristics

• “We want to copy the success of

the Silicon Valley”

• Top-down implementation

• Often driven by economic policy

• Attracting companies with tax

incentives

Wishful thinking clusters

• “This industry has a long heritage

here”

• Basically bottom-up process

• Industry driven

• Politics focusing on ensuring an

optimal business environment

Real clusters

Clustering process rooted in the

industry, self-reinforcing process of

clustering

High risk of failure if disruptive

technology makes specific industry

obsolete

Clustering process highly

depending on public money/

support

High risk of failure if top-down

approach not also supported by

the industry or if public support is

too small or is stopped

Estimation of

all “clusters”

90% 10%

Source: Own illustration.

3. Growing a cluster or letting a cluster grow

Get additional insights into the Swiss medtech industry,

visit our website www.medtech-switzerland.com.

Download the

Swiss Medtech

Report

Search our database for products and

competencies of Swiss medtech companies

and stakeholders

Download the Swiss Medical

Technology Industry Survey

Thank you for your attention.

www.medtech-switzerland.com

• Dr. Patrick Dümmler, Managing Director

• Medtech Switzerland

Wankdorffeldstrasse 102

Postfach 261

CH-3000 Bern 22

• Tel. +41 76 532 53 16

• Mail [email protected]

Your contact

mailto:[email protected]

Dr. Patrick Dümmler

Documents

Transcript of Dr. Patrick Dümmler