The core data of this paper: the development scale of national medical device industry; The number of medical device patents in Jiangsu Province; Number of medical device industry chain enterprises in Jiangsu Province; Medical device market size in Jiangsu Province; Proportion of medical device category in Jiangsu Province

  Medical device industry development status and value chain distribution

  -- Scale of development of the national medical device industry

  According to the "China Medical device Industry Blue Book (2024)" statistics, 2016-2023 China's medical device industry market size showed an upward trend year by year, 2023 China's medical device industry market size reached 1032.8 billion yuan, an increase of 5.1%, 2016-2023 compound growth rate of 16.1%.

-- Distribution of value chain of medical device industry

  The upstream industry of the medical device industry is the manufacturing of medical device components, involving electronic components, raw materials, software systems, emerging technologies and other fields; The midstream industry is related to the research and development, manufacturing, sales and service of medical devices; The downstream industry is the medical and health industry, including hospitals, centers for Disease Control and Prevention (CDC), family planning agencies, patriotic health movement agencies and medical and health research institutions, among which the most important subject is all kinds of hospitals at all levels.

  According to the Porter value chain theory, the basic activities of China's medical device industry mainly include the research and development, production, assembly and packaging and sales of medical devices, which constitute the main profitable activities of enterprises in the medical device industry and create value for enterprises. The auxiliary activities of enterprises mainly include the overall activities of the company, human resource management, procurement and sales activities. At present, the profit level of high-value medical consumables and in vitro diagnostics in the middle reaches is relatively high, up to 80%

Note: The above gross profit margin range is filled in with the gross profit margin of the industry representative listed companies in 2023

Jiangsu medical device industry policy environment

-- Analysis of provincial policy of medical device industry in Jiangsu Province

Jiangsu Province is committed to promoting the high-quality development of the medical device industry through a series of policy measures such as financial support, optimization of the approval process, innovation of market supervision mechanisms, and promotion of innovative product applications. Specifically, the Jiangsu Provincial Drug Administration issued the "Jiangsu Province Drug Safety Responsibility Interview Management Measures" to strengthen the safety supervision of a series of drugs, including medical devices, and urge the administrative counterpart to implement the main responsibility for drug safety, and prevent, control and eliminate drug safety risks. In addition, the Jiangsu Provincial People's Government issued Several Policy Measures to Promote the Overall Improvement of Economic Operation, which supported the production and research of pharmaceutical devices from multiple dimensions such as financial support, optimization of the approval process, tax reduction and fee reduction, such as providing up to 20 million yuan of financial support to encourage innovative research and development of medical devices; Establish a priority review and approval channel for innovative medical devices, and optimize the review and approval process for the second type of medical devices; For general medical device enterprises, the product inspection fee is reduced by 5%, and for small and micro medical device enterprises, the product inspection fee is reduced by 10%.

These policy measures together constitute the policy environment of the medical device industry in Jiangsu Province, through these comprehensive policy measures, Jiangsu Province aims to create a global influence of the biomedical industry cluster, promote the innovation and upgrading of the medical device industry.

Note: The statistical period of the above policies is as of August 9, 2024

-- Regional policy heat map of medical device industry in Jiangsu Province

In addition to provincial industrial policies, 13 prefecture-level cities under the jurisdiction of Jiangsu Province have also promoted the development of the regional medical device industry through the introduction of relevant industrial development policies. In terms of the number of medical device industry-related policies issued by 13 prefecture-level cities in Jiangsu Province since 2015, Nanjing and Taizhou have issued the largest number of medical device industry-related policies, and under the guidance of policy support, Nanjing and Taizhou have become the highland of medical device industry development in Jiangsu Province, leading the country in medical device manufacturing, industry chain construction and market application and promotion.

Note: ① The time range of the above-mentioned policy quantity statistics is from 2015 to August 9, 2024; The number of urban policies is the total number of policies related to the medical device industry in the city within the statistical time range

Jiangsu Province medical device industry chain development status map

-- Jiangsu medical device industry chain ma

As one of the important bases of the national medical device industry, Jiangsu's medical device industry chain is continuously optimized and upgraded thanks to the dual promotion of policy support and market demand. Jiangsu Province has a layout in the upper, middle and lower reaches, with a diversified product system including imaging equipment, implant intervention equipment, medical robots, etc. At present, there are a total of 16 leading listed medical device companies in Jiangsu province, mainly Tianhua Super Clean, Yuyue Medical, Nanwei Medical, basic egg biology and other enterprises.

-- Jiangsu medical device industry chain enterprise map

In the medical device industry chain of Jiangsu Province, the distribution of enterprises shows regional characteristics and industrial agglomeration effect. Nanjing, Suzhou and Wuxi, with their scientific research strength and high-tech industrial base, have become the main clusters of medical device CRO companies, which play a key role in the field of drug development and medical device design. At the same time, Suzhou, Nanjing, Nantong, Changzhou and Zhenjiang are concentrated in many high-value medical consumables enterprises, these enterprises take advantage of local industrial advantages and market potential, focusing on the development and production of high value-added medical device products. In the northern region of Jiangsu Province, such as Suqian City, Huai 'an City, relying on the production capacity of raw materials and electronic components, provides a solid foundation for the upstream link of the medical device industry, and enterprises in these areas are mainly involved in the supply of raw materials and primary product manufacturing of medical devices, providing important support for the smooth operation of the entire industrial chain. On the whole, the development of the medical device industry chain in Jiangsu Province shows the characteristics of regional division of labor and collaborative development, and each region has formed its own distinctive industrial clusters according to its own advantages, jointly promoting the prosperity and progress of the medical device industry in Jiangsu Province.

-- Carrier map of Jiangsu medical device industry development

The rapid development of medical device industry in Jiangsu Province has highlighted the effect of industrial agglomeration. At present, Jiangsu has formed an industrial cluster represented by Suzhou, Changzhou, Taizhou, Wuxi, Nanjing and other regions, with obvious regional characteristics and advantages. At the same time, other cities in Jiangsu Province also speed up the introduction and cultivation of medical device industry chain enterprises, accelerate the development of medical device industry cluster carrier construction, different industrial cluster carrier focus on the development of the industrial chain links are different, the differentiated development of industrial clusters better promote the improvement of the construction of medical device industry chain in Jiangsu Province and the expansion of industrial scale. The medical device industry in Jiangsu Province has shown remarkable competitiveness and development potential in terms of industrial scale, cluster development, policy support, number of enterprises and market status.

      Development status of medical device industry in Jiangsu Province

-- The number of newly registered enterprises continues to rise

The development foundation of Jiangsu medical device industry ranks at the forefront of the country, and the business environment of enterprises is excellent, attracting a large number of medical device industry enterprises to develop in the province. According to the data of enterprise check cat query, in recent years, the number of newly registered enterprises of medical devices in Jiangsu Province has grown rapidly over the years. In 2021, there were 768 new registered enterprises in the medical device industry in Jiangsu Province throughout the year, nearly doubling the number of newly registered enterprises in 2020. In 2022, the number of newly registered enterprises in the medical device industry in Jiangsu reached a new high, as of August 30, 2022, the number of newly registered enterprises related to the medical device industry in Jiangsu Province in 2022 reached 910, and the development of the medical device industry in Jiangsu Province continued to be hot.

-- The number of patent applications ranked first in China

Jiangsu Province attaches great importance to medical device technology innovation, and its research and development capacity continues to improve. According to incopat query data, since 2016, the number of patent applications in the field of medical devices in Jiangsu Province has grown rapidly, and the number of patent applications in the calendar years 2016-2023 has exceeded 3,000. As of August 7, 2024, the cumulative patent applications in the field of medical devices in Jiangsu Province exceeded 50,000, ranking the first in the country, on the whole, the research and development capacity of the medical device industry in Jiangsu Province ranks the forefront of the country, and the high-quality innovation environment provides a strong support for the development of the medical device industry.

-- The overall level of the medical device industry is in the forefront of the country

From the perspective of industrial scale and economic benefits, the overall level of the medical device industry in Jiangsu Province has been in the forefront of the country, and has become an important economic growth pole for the development of the pharmaceutical industry in our province. According to the medical device data cloud, the compound growth rate of the output value of the medical device industry in Jiangsu Province from 2017 to 2022 is 13.3%, and the initial estimate is that the output value in 2023 will reach 147 billion yuan, accounting for a decrease in the proportion of the country, reaching 9.8%.

-- Medical device enterprises mainly produce a class of devices

In 2023, enterprises in Jiangsu Province that only produce first class equipment accounted for 53.72%, enterprises that only produce second class equipment accounted for 34.72%, enterprises that only produce third class equipment accounted for 4.07%, and enterprises that produce second class and third class equipment accounted for 7.5%. From the perspective of the types of enterprises producing equipment, the proportion of three types of enterprises in Jiangsu is more competitive than that in Guangdong.

Development prospect and planning of medical device industry in Jiangsu Province

According to the Jiangsu Provincial Department of Industry and Information Technology issued the "Jiangsu Province 14th Five-Year" pharmaceutical Industry Development Plan ", the plan clearly states: In terms of medical devices, focusing on key areas such as high-performance diagnosis and treatment equipment, emergency medical equipment, smart medical equipment, and medical consumables, it actively promotes the integration of medical and industrial innovation, and builds a medical device development system covering the full life cycle of design, research and development, clinical, industrialization, and integration of medical and health services.

During the "14th Five-Year Plan" period, Jiangsu Province will focus on the "five categories of equipment" to help develop the medical device industry: