Is the rest of the world gaining ground on the United States in terms of innovation? The answer is yes, according to a PricewaterhouseCoopers (PwC) report released in late January. The analysis found that the United States still reigns as the top medical technology innovator—but emerging markets such as China, India, and Brazil are catching up. In addition, the market power of these emerging economies is shifting both innovation resources and activity abroad.

“The medical technology field in the U.S. has long benefited from a confluence of social, technical, political, and economic forces that came together to create an ecosystem [that] fosters medical technology innovation,” said Michael Swanick, PwC’s U.S. pharmaceuticals, medical device, and life sciences industry leader, in a news release. “However, the balance of these forces is beginning to change, driven by global economic dynamics, governmental policies and the actions of individual companies and entrepreneurs.”

PwC evaluated nine nations using a medical technology innovation scorecard, analyzing specific factors that advance innovation and using 86 different metrics for evaluation. The other countries scrutinized were Brazil, China, France, Germany, India, Israel, Japan, and the United Kingdom.

On a 1–9 scale, with 9 as the highest medical technology innovation score, the United States earned a 7.1, easily the top mark. Other developed nations—the UK, Germany, France, and Japan—had scores ranging from 4.8 to 5.4. These countries were followed by Israel and the aforementioned emerging markets. The lowest innovation score was shared by India and Brazil (2.7).

But the United States shouldn’t rest on its laurels. PwC sees China, India, and Brazil as the most likely nations to see gains during the coming decade. Factors bogging down innovation in the United States include the usual suspects: ballooning costs, regulatory uncertainty at FDA, and an increased focus on value. However, changes overseas have also had a profound effect. These changes include investment in local academic medical centers, the advancement of mobile health technologies (expanding access to care), and foreign-educated professionals returning to their homelands.

These factors and potentially many others have led to medtech companies looking to countries outside the United States to get clinical data, new product registration, and their first revenue opportunities.

“As the innovation ecosystem evolves, it creates challenges for those countries and companies that have ridden this wave—and offers opportunities to those, in the U.S. and around the world, who find themselves well-positioned to adapt to new modes of innovation,” Swanick said.

For the complete report, go to www.pwc.com/innovationscorecard.