Health Economyin Northern Germany
and the Baltic Sea Region:what is in for the regions?
Using Nordic-European synergies in co-operation
Conference Smart Growth – Smart Specialisationin the BSR
Malmö, Sweden 5-6 April 2011
Wolfgang Blank, BioCon Valley GmbH & ScanBalt fmba
Trends …
SteelRailway
ElectronicsChemistry
PetroindustryAutomobile
InformationComputer
Life SciencesPsychosocial
health
1900 1950 1980 2000 2010
Opportunities & challenges:• Scientific progress (stem cell research,
molecular biology, diagnostics)• Growing health awareness• Ageing society• Stability of social health care systems
Source: NY Times, 2008Source: NY Times, 2008
Source: Der Spiegel, 2008Source: Der Spiegel, 2008
Source: HBSC Survey 2005-2006, Currie et al. (2008).
Life style
2005-06
Bildquelle:www.keinfastfood.de
Demographic development
So
urc
e:
OE
CD
He
alth
Da
ta 2
00
9,
OE
CD
(h
ttp
://w
ww
.oe
cd.o
rg/h
ea
lth/h
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ata
).
North Eastern Germany Located in between
metropolitan areas Berlin, Hamburg, Copenhagen
Population approx.1,8 million (= Hamburg)
Area approx. 23.000 km ² Approx. 80 inhabitants /km ² Rostock largest city
(200.000 habitants) Maritime countryside with
more than 1.000 km coast line and more than 1000 lakes
Schwerin
GreifswaldRostock
Comparison Germany vs. Mecklenburg-Vorpommern
14,917,5
20,122
10,6
16,9
22,3
26,5
1989 2002 2012 2020Year
0
5
10
15
20
25
30Ratio (in %)
Ger M-V
Development of senior population 65+
Quelle: Stat. Landesamt M-V, 2003, Prof. Hoffmann© ICM EMAU 2006
„YoungestFederal State“
„EldestFederal State“
Age-related diseases in M-V
Comparison 2002 vs. 2020
© ICM EMAU 2006
Men Women
Diabetes Type II+ 20% (8.800)
+ 1% (500)
Coronary diseases, ...+ 48% (1.600)
+ 32% (900)
Stroke + 53% (700) + 27% (550)
Cancer+ 36% (1.750)
+ 13% (550)
Dementia + 67% (11.500)
From challengesto opportunities
Average age:
71 yearsAverage age:
71 years
Dürer´s mother, 1514
Nordic VIP´s, ~ 2010
„Healthy“ Ageing
Each second,today born girlwill havethe opportunityto celebrateher100th birthday!
Senior workforce Vita Needle Inc. 95% of staff senior
citizens (part-time) Average age 73 Some examples:
Rosa Finnegan,93, 9 years
Bill Ferson,86, 17 years
Dick Tompkins,78, 2 years
„Retirement is a dirty word“
Vita Needle Inc. 95% of staff senior
citizens (part-time) Average age 73 Some examples:
Rosa Finnegan,93, 9 years
Bill Ferson,86, 17 years
Dick Tompkins,78, 2 years
„Retirement is a dirty word“
http://www.vitaneedle.com
The Burden of An Ageing PopulationHealth Care Spending in Germany
Re: German igsf 2005
1.032
794
657
1.111
1.703
2.826
4.197
5.371
858
679
957
1.340
1.732
2.493
3.658
4.903
Age
1
10
20
40
50
65
75
90
From „burden“ …
… to „profitable business models“
35,60 37,12 38,7340,42 42,20 44,08
1998 1999 2000 2001 2002 2003
Turnover in Bln. € of theWell-being Industry in
Germany
0,95 Health& Literature
3,66 Pharmaproducts/Cosmetics
4,06 Health & Food
6,60 Massages,Physiotherapy
11,07 Health & CuresHealth & Vacation
17,74 Fitnes & Sports Course of baths
50
40
30
20
10
0
Bln €
OthersOthers
JapanJapan
Europe Europe (without (without
Germany)Germany)
USAUSA
GermanyGermany
10%
20%
16%
43%
11%
20062006Total VolumeTotal Volume
260 Bln €260 Bln €
Re: Frankfurter Allgemeine Zeitung, 01.07.2006
World market of Medical Technology
It is a huge market …
… … with a highwith a highInnovation rate !!!Innovation rate !!!
North Eastern Germany Located in between
metropolitan areas Berlin, Hamburg, Copenhagen
Population approx.1,8 million (= Hamburg)
Area approx. 23.000 km ² Approx. 80 inhabitants /km ² Rostock largest city
(200.000 habitants) Maritime countryside with
more than 1.000 km coast line and more than 1000 lakes
Challenges:- No big industry- Remote location within Germany- Limited financial resources- Demographic development
Schwerin
GreifswaldRostock
„Public Private Partnership“
© BioCon Valley® GmbH · Greifswald / Rostock 15
Capital CompanyLand Mecklenburg-Vorpommern ~51%
BioCon Valley e.V. ~27%Financial institutions ~20%
BioCon Valley GmbH
Non profit association~160 members (companies, universities, research institutions, service providers,
hospitals, hotels, ...)
BioCon Valley e.V.
Bundle forces and Stimulate cooperation between
research & industry Promote regional/ international
cooperation
• Prevention/Health promotion• Health Tourism• Silver economy
(Successful ageing)• Rehabilitation
• Food &nutrition
Sectoral focus
• Blue (marine) biotechnology• Green biotechnology
(agriculture, nutrition)• Red biotechnology• Medical technology• White (industrial) biotechnology
16© BioCon Valley® GmbH · Greifswald / Rostock
Employees in health economy
Main SectorAmbulante / inpatient medicare
Administration, chemist‘s, health and spa business, self-help
Pre- service and supply industrie(handcraft, medical technology, pharmaceutical industry, ...)
Sub sectors and boundary area of the health care
61.745
13.279
5.790
5.444
86.258~ 15% of MV employeeswork in/for health sector!
17© BioCon Valley® GmbH · Greifswald / Rostock
MV in comparison (Wifor)
© 2010 WifOR | Dr. Dennis A. Ostwald | Healthcare Industry: Growth and employment driver? 12 | 18
2. Health Care Industry as a growth and employment driver?Ranking of the federal states of Germany (impact of the GVA)
Rank 2006
GVA in %2006
Rank 1996
Differences1996-2006
Mecklenburg-Vorpommern 1 13,7 1 +2,7
Berlin 2 13,4 4 +3,0
Sachsen-Anhalt 3 12,9 5 +2,5
Thüringen 4 12,8 2 +2,0
Brandenburg 5 12,2 6 +2,0
The impact of the HCI is especially in economically underdeveloped
regions very high.
Source: Destatis, 2009; BA 2009; Berechnung: Wertschöpfungsansatz, WifOR, 2010.
Turnover MV: ~ 3.5 – 4 Bio. €
MasterplanHealth Economy MV 2020
© BioCon Valley® GmbH · Greifswald / Rostock 19
Health CarePrimary sector
Life Sciences(Biotech, Pharma,
Medtech)
HealthyAgeing
Health servicesHealth tourism
Food and nutrition
Healthy ageingMasterplan Health Economy MV 2014 - 2020
© BioCon Valley® GmbH · Greifswald / Rostock 20
Quality of life
Work &productivity
Health & wellbeing
Education & Culture
Living environment& mobility
Stable health care systems affecting a population of approx. 85 Mio. people
More than 5 Mio.Employees in health careand related industries
Critical mass of innovative universities with world class basic science with a general strong focus on life sciences
Well educated, skillful and motived human ressources
Strong health care/pharma/ medtech industry with more than 2.000 companies
Life sciences and HealthMode 3 clusters
Co-location clusters
Scientific fountains
Mode 3 clusters
Co-location clusters
Scientific fountains
Key drivers inKey drivers inHot spots inHot spots in
Regional hot spots in life science
Bio
chem
. &
Mol
. B
iol.
Bio
phys
ics
Bio
tech
nolo
gy
Car
diov
ascu
lar
Cel
l Bio
logy
Dev
elop
men
tal B
iolo
gy
End
ocrin
olog
y
Bio
med
. E
ngin
eerin
g
Gen
etic
s &
Her
edity
Hem
atol
ogy
Im
mun
olog
y
Inf
ectio
us D
isea
ses
Bio
mat
eria
ls
Med
ical
Inf
orm
atic
s
Mic
robi
olog
y
Mul
tidis
c. S
cien
ces
Neu
rosc
ienc
es
Onc
olog
y
Pha
rmac
olog
y
Phy
siol
ogy
Viro
logy
ScanBalt 10
ScanBalt 13
Stockholm
Boston
London
0,8-1
0,6-0,8
0,4-0,6
0,2-0,4
0-0,2
high
low
ScanBalt CompetenceRegion LSHM-CT-2004-503406: Benchmark analysis on quantitative and qualitative data
Cooperationbetween regions
„Competence hubs“
„Competence hubs“
„Competence Satellites“
„Competence Satellites“
„Competence Satellites“
„Competence Satellites“
„Competence Satellites“
„Competence Satellites“
ScanBalt catalyzer for interactions:Exchange of human capital, knowledge, innovation; EU FP7 proposals, joint projects; strategy development; …
European Strategyfor the Baltic Sea 4 challenges
(main focus areas) environmental sustainability, prosperity, attractiveness and safety / security.
10 horizontal actions 15 objectives (priority areas) > 80 flagship projects
FlagshipScanBalt
Health Region
Flagship project„Baltic Sea Health Region“ Long title: “Set up cross-sectoral reference projects
for innovation in health and life sciences” Objectives:
… promotion of public health on a high level … exploitation of modern life sciences … innovations in science, technology and social science Baltic Sea Region as a model for
providing the basis for a knowledge-based economy and for implementing a shared strategy
Lead Partners: BioCon Valley (Germany) Lithuanian Biotechnology Association (Lithuania) ScanBalt and ScanBalt Academy
BSHR is an open structure, partners
welcome!
BSHR is an open structure, partners
welcome!
Political governance usually distributed in different ministries
Reimbursement schemes or business models vary between social systems and privately financed health systems
High market pressure for innovation in very different areas from high tech products to innovative but low tech services
Actors from separate sectors with differentcommunication and business cultures
Cross-sectoral
communication and
actions urgently
needed
Cross-sectoral
communication and
actions urgently
needed
Challenges
Action lines
Install communication & governance platform and start a sustainable, „directed“ (bottom up resp. top down) and cross-sectoral consultation process– Prio. 7 BSR Stardust („Innovation“)
– Prio. 12 Northern Dimension („Health“)
– Prio. 8 ICT for Health („ICT“)
Initiate transnational strategy development process based upon regional consortia and interests
Initiate and support project consortia in common areas of interest
Create a macro-regional model for transnational cooperation in the strategically important area of health and life sciences
ScanBalt & Healthy Ageing
• Participation in Active for Life - Project– Establish cooperation platform– Align regional strategies for ageing and wellbeing
• ScanBalt Position Paper on Healthy Ageing– From Biological Fundaments to Clinical Solutions– Basis research, Population research,
Development of products and processes, Public private partnership models
– Developmental focus areas eg. Ageing Brain, Healthy food and nutrition, Technologies for Ageing people, Healthy Ageing at work, E-health
What is in for the regions?
1996 2006
Source: WifOR 2010 (www.hci-compass.com ); Database: BA, 2009; Fed. Statistical Office, 2009.
Importance of Health care related industries concerning employment
Health and structural fonds2007 - 2013• Total Structural funds 347,8 Bio. €
– Convergence (Phasing out) 282.8 Bio. € 81,5%
– Competitiveness 55.0 Bio. € 16,0%
– Territorial Cooperation 8.7 Bio. € 2,5%
• Investments in health– Direct health investment 5 Bio. €
1,4%
– Indirect health investment ??
– Not health investment ??
21. – 24. Sept 201121. – 24. Sept 2011
10. ScanBalt 10. ScanBalt Forum Forum
„„10 Years ScanBalt 10 Years ScanBalt BioRegion – BioRegion – Towards a Balanced Towards a Balanced Regional Development and Regional Development and Smart Specialization in the Smart Specialization in the Baltic Sea Region”Baltic Sea Region”
Thank you !Thank you !
Thank you !Thank you !
Global interview projectConference 2010 Göteborg, www.omep2010.orgBy courtesy: Bo Samuelsson, Göteborg
Current Impact
Biotech Workforce
Human Capital
Risk Capital
R&D Input
„scientific fountain“
„co-location“
„mode-3“
North-West Russia Biotech
North Poland Biotech
Kalmar BioScience
BioTeam-South
Latvia Biotech
MedCoast Scandinavia
Medicon Valley
Bio Turku
BioCon Valley
Lithuania Biotech
Estonia Biotech
ScanBalt –a string of competency clusters
HelsinkiStockholm
[Berlin][Hamburg]
MV in comparison (Wifor)
© 2010 WifOR | Dr. Dennis A. Ostwald | Healthcare Industry: Growth and employment driver? 13 | 18
2. Health Care Industry as a growth and employment driver?Ranking of the federal states of Germany (impact of the employment)
Rank 2006
Emp. in %2006
Rank 1996
Differences1996-2006
Berlin 1 15,8 1 +2,0
Mecklenburg-Vorpommern 2 15,1 2 +2,1
Sachsen-Anhalt 3 14,6 7 +2,2
Brandenburg 4 14,2 9 +2,2
Schleswig-Holstein 5 14,1 3 +1,2
The same conclusion can be made for the employment.
Source: Destatis, 2009; BA 2009; Berechnung: Wertschöpfungsansatz, WifOR, 2010.
Health and structural fonds2007 - 2013
• Health expenditures in all EU countries range from 4.9 to 10.7% of GDP
• Described in strategic reference framework and operational programmes– „Direct“ and „indirect health investment“
• E.g. health infrastructure, e-health, inpatient care, access to healthcare by vulnerable social groups, emergency care, medical equipment, screening, health and safety at work, health promotion and disease prevention, education and training for health professionals
– Non health sector investmentwith potential health gain
Health & wealth “Health Economy” sector provides more jobs and
generates more income than many “traditional” sectors, like automotive, agriculture or food industry.
Health Economy is a pillar of knowledge-based society, which allows the Baltic sea region to compete with Asia and the US.
Investment in health fosters long term growth and sustainability of economies.
Health Economy has proven to reduce the negative effects of the economic crisis and prepare for a time after the crisis.
Flagship Strategy• Mission:
“Set up cross-sectoral and transnational reference projects for collaboration and innovations in health and in life sciences in order to promote public health on a high and sustainable level and to make Baltic Sea Region a globally leading and prosperous meta-region within health.”
• Draft of strategy paper,to be published at ScanBalt Forum 2010 in Tallinn
Action lines
Install communication & governance platform and start a sustainable, „directed“ (bottom up resp. top down) and cross-sectoral consultation process– Prio. 7 BSR Stardust („Innovation“)
– Prio. 12 Northern Dimension („Health“)
– Prio. 8 ICT for Health („ICT“)
Initiate transnational strategy development process based upon regional consortia and interests
Initiate and support project consortia in common areas of interest
Create a macro-regional model for transnational cooperation in the strategically important area of health and life sciences
Growth rate of the health care industry is above-
average compared to the national economy
Growth rate of the health care industry is above-
average compared to the national economy
German-Monitoring:Growth driver Health care industry
GVA growth rate for the national economy and Health care industry
* *
* Database: 2nd respectively 3rd extrapolationof the NA
Ø 3,4% p.a.
Ø 1,9% p.a.
Source: WifOR 2010; Database: Fed. Statistical Office, 2009.
GVA national economyGVA health care rel. industry
* *
In recent years the Health care industry has set up an above-average employment in Germany.
In recent years the Health care industry has set up an above-average employment in Germany.
German-Monitoring:Job driver Health care industry
Growth rate of employment
* Database: 2nd respectively 3rd extrapolationof the NA
Source: WifOR 2010; Database: Fed. Statistical Office, 2009.
Health – share of GDP
Source: OECD Health Data 2009, OECD (http://www.oecd.org/health/healthdata).
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