Taiwan possesses unique advantages for developing the smart medical device industry. Firstly, Taiwan boasts world-class ICT capabilities, holding a leading position in fields such as semiconductors and electronics manufacturing—the core competencies required for smart medical devices. Secondly, Taiwan has a comprehensive healthcare system and a highly skilled medical workforce, providing valuable expertise and practical scenarios for research and clinical applications.
Furthermore, Taiwan's aging population is driving a growing demand for high-quality medical equipment. Finally, Taiwan boasts a flexible ecosystem of small and medium-sized enterprises (SMEs), which facilitates innovation, rapid response to market demands, and the promotion and replication of these technologies in overseas markets. These factors combined make Taiwan an ideal location for developing the smart medical device industry.
However, developing the smart medical device industry faces a significant challenge: a long investment recovery period. Medical device products typically require several years from research and development to commercialization, demanding a long-term vision and patience from investors. Therefore, proactive government measures are needed to promote the connection between the capital market and the smart medical device industry. For example, the government could establish a dedicated smart medical device industry fund to provide seed funding and early-stage investment for startups, and encourage venture capital and private equity funds to invest in the field through tax incentives. The government could also establish smart medical device industrial parks to concentrate resources and talent, creating an industrial cluster effect and attracting more investors. Furthermore, hosting various events could facilitate communication between the capital market and smart medical device industry players.
The government should also focus on improving the relevant legal environment, simplifying the review process for smart medical devices, and ensuring product safety and effectiveness. A fast-track review channel for smart medical devices should be established to shorten time to market. Furthermore, the government should promote medical insurance system reform to include more new forms of smart medical devices in insurance coverage, expanding market demand. The government should also play a leading role in raising public awareness of the importance of the smart medical device industry and stimulating public interest and investment.
Developing the smart medical device industry presents a significant opportunity for Taiwan to improve its healthcare standards and drive economic transformation. While facing challenges such as long investment recovery periods, Taiwan is fully capable of achieving a leading global position in this field through proactive government guidance and concerted efforts from all parties. The government should fully recognize the strategic importance of this industry and take comprehensive measures to support its development, laying a solid foundation for Taiwan's future prosperity.
Source: Financial News Issue 719