Financing in 2009 was surprisingly robust, with U.S. companies driving an 88% jump, mostly from debt financing. Venture capital did fall about 22% and IPOs didn’t really figure in at all, according to Ernst & Young’s Pulse of the Industry report for 2010. But the situation improved going into 2011. There was a 20% year-over-year increase in VC investment and a rebound in the number of companies willing to test the IPO market.

Large firms have plenty of access to capital and VC money is available, but mostly for later-stage technologies. Start-ups and small firms still face significant challenges in raising money. Emerging firms face a strain on VC funds, and this could have a significant influence on innovation. Firms need to get creative, not only in how they search for funding, but in how they treat that funding, and maybe in how the innovation model is changing.

Top U.S. venture rounds in 2009 and H1 2010. Source: Ernst & Young's Pulse of the Industry 2010.

The medical device industry has slowed its pace in outperforming the S&P 500. Source: Capital IQ.

The top 40 public companies that provide medical device manufacturing worldwide, ranked by trailing 12-month (TTM) revenues. Source: Capital IQ.