2011 Recommendations on Accelerating the R&D of Domestic High-end Medical Equipment

At present, China's medical device industry has made great progress, but as the world's largest potential medical device consumer market, China's medical device manufacturing enterprises each year more than 60 billion yuan in industrial output value accounted for only 2% of the world market share. According to statistics, at present there are about 3,000 medical device manufacturers in China, but most of them are smaller in size, have limited market power, and have only a small percentage of competitive products. The high-end medical devices produced are still based on imitation and improvement, and there is a big gap between the quality level and the large international companies.

Each year, China spends hundreds of millions of US dollars in foreign exchange to import large amounts of medical equipment from abroad. Nearly 70% of domestic high-end medical equipment markets are divided and monopolized by developed country companies. Like CTs with more than 64 layers, high-end equipment such as magnetic resonance, high-end color ultrasound, linear accelerators, PET/CT, etc. with a size of 1.5T or more are almost all dependent on imports. Multinational companies have absolute control over pricing, resulting in high prices. The domestic enterprises' products are mainly concentrated on low value-added categories.

In recent years, the demand for high-end medical equipment such as CT, magnetic resonance imaging machines, and nuclear medicine PET/CT has increased dramatically with the continuous improvement of living standards and the growing awareness of public health. The products of multinational corporations have taken over China. At present, most of the top three hospitals in China use foreign imports. They are mainly monopolized by the three major foreign companies: General Electric, Siemens, and Philips. Although the performance of the instrument is high but the price is expensive, the phenomenon of "empty core" in the equipment and equipment is serious.

The phenomenon of important instruments and equipments that are required to be controlled by people in some key areas related to the national economy and people's livelihood has already been highlighted, which seriously restricts the implementation of China's independent innovation strategy. This has caused a huge impact on the domestic national digital medical equipment industry at the initial stage, has played a role in fueling the high growth of medical expenses, and has directly affected the vital interests of the general public. This is one of the important reasons that lead to the “expensive medical treatment” of the people.

At present, domestic high-end digital medical equipment is difficult to base on China's own market. In the current historical period of implementing independent innovation strategy and building an innovative nation-building, under the guidance of the scientific concept of development, it is imperative to continuously and stably strengthen the research and development of medical imaging diagnostic equipment and other research resources. In addition, China is in a critical period of medical reform. One of the keys to solving the problem of the public’s medical care is to reduce inspection costs.

Therefore it is recommended that:

1. The government should attach great importance to the localization of high-end medical equipment. On the basis of conducting thorough investigations, we will formulate mid- and long-term R&D plans, increase investment in independent innovation and research and development of key technologies, and incorporate the digital medical equipment industry into emerging industries related to the people's livelihood that the country focuses on. To implement government procurement for domestic high-end digital medical equipment with independent intellectual property rights and establish a digital medical equipment technology standard system in China as soon as possible.

2. To formulate special research and development policies, concentrate superior strengths, invest special funds and personnel, and make great efforts to independently develop high-level and high-quality medical equipment in China. Entrust research institutes or universities that have a good R&D foundation to conduct research and development. As a high-tech medical device of high-tech products, a scientific and technological achievement requires at least three to five years of conversion, and no investment of one or two million yuan cannot be produced. The relevant government departments should be promoted with policy funds and other means to help companies with good market prospects to complete the entire innovation chain.

3. Intensify the training of professionals and train a group of composite talents who understand both medical science and mechanical electronics. The medical equipment industry is a comprehensive industry with a high degree of technology and involves a wide range of disciplines. The technology spans many fields such as nuclear physics, software, fast electronics, mechanics, medicine, pharmacy, molecular biology, and molecular imaging. It requires mutual infiltration between different disciplines and joint research among different disciplines.

4. Establish a series of positive incentive systems. First, on the issue of charging fees for imported equipment and domestic equipment, the double standards of homogeneity and different prices implemented by most medical institutions are corrected. Second, the orientation of government procurement is very important to promote the development of the medical device industry. With the implementation of the new medical reform plan, the imported domestic products will be gradually included in the scope of medical insurance, and the development of related domestic industries will be promoted.