Storm Clouds over Minnesota Medtech Industry

Those who have ever been to Minnesota can see with their own eyes that the state really does have many lakes, if not exactly 10,000 of them. Not long ago, they could also see that the state boasted a robust medical device manufacturing sector, but that may be changing. A recent industry report claims that medtech advances in Minnesota are on the wane, attributing the brewing crisis to lack of state support, failing innovation, and shortsightedness on the part of the University of Minnesota.Titled Destination 2025, the report from the BioBusiness Alliance of Minnesota and Deloitte Consulting asserts, "The environment that existed in Minnesota and enabled the growth of strong economic clusters such as food and medical devices is not as favorable as it once was." It continues, "The state's public, private, and academic communities have gradually drifted apart ... and [the state] is no longer 'best in class.' It is average, and in some cases, below average."The report maintains that unlike nearly 30 other states, Minnesota has not developed, funded, or implemented a major comprehensive science and technology initiative to support recruitment and retention of talent, develop and maintain infrastructure, encourage research, and attract external financing. Even leading medical device OEMs such as Medtronic Inc. and Boston Scientific Corp. are retrenching.Minnesota is known for concentrating on the production of cardiac devices, but some observers insist that the one-track obsession of focusing on growing market share instead of innovation is damaging the state's economy. And part of the responsibility for not encouraging innovation can be laid at the doorstep of the University of Minnesota. According to the report, "The University of Minnesota has lost its once-recognized leadership role in medical device research." The school "must reestablish its premier status among universities by supporting research relevant to the medical device industry."Stung by the criticism, University vice president of research Tim Mulcahy exclaimed, "It's a wake-up call." Nevertheless, the university has not been sitting on its hands entirely. In June, it opened a $400,000 medical devices center for faculty, students, and professionals to transform research into companies. Mulcahy said that the school is expanding its ability to conduct clinical trials and is making investments in neuroscience, drug discovery, and nanotechnology."With its combination of human- and animal-health capabilities, Minnesota is in a unique position to heavily influence the future of the [medical device] industry," the report notes. "The state has world-class research and world-class manufacturing. The critical pieces that are missing are world-class collaboration and a clear understanding of how to leverage the capabilities across the boundaries that exist today."