Where in the United States is the Next Medical Device Hub?

Titled "From FAA to FDA," a recent workshop held in Wichita, Kansas--or as it's affectionately known, the "Air Capital of the World"--served to encourage local aircraft subcontractors to diversify into the medical device industry. Through such outreach campaigns and education, the city hopes to cultivate a medical device cluster as part of its long-term economic goals. And it's not the only one. Cities, counties, and states around the country are launching initiatives, investing funds, and running workshops or seminars such as this one to lay the foundation for a potentially lucrative biomedical device cluster. But with all of these economic development groups focusing on the medical device industry, one has to wonder: Which U.S. region could emerge as the next big medical device hub?

Southern California, Massachusetts, and the Twin Cities area of Minnesota have long ruled the medical device roost. In addition, New Jersey, Florida, and Pennsylvania have nurtured thriving medical device clusters, while areas such as Warsaw, Indiana, and Research Triangle, North Carolina, have made a splash in specialized areas such as orthopedics and medical device R&D, respectively. But despite having an established medical device industry, these regional hubs could soon face serious competition. Some up-and-coming regions are trying their best to set up attractive business environments and incentives to lure medical device business into these fledgling industry clusters. We've highlighted a few contenders below.

Kansas. As noted, Wichita, in particular, sounds like it's legitimately trying to get a medical device cluster off the ground. Although it still seems to be in the early stages of building the cluster, the area has a lot going for it, notably its vast experience in the aircraft industry. Luckily, it could be a relatively smooth transition for local contract manufacturers that decide to the take the plunge and serve the medical device industry. "The buzzwords in medical devices are product safety, sterility in manufacturing and engineering, technological advancement, and alternative materials and coatings," Harvey Sorensen, a local attorney, said at the Witchita conference. "If those words sound familiar to you, they ought to, because you already do those things." This skilled workforce with a transferrable skill set could be the key to a strong base with which the city can attract medical device clients and help the cluster to flourish. Furthermore, the area boasts proximity to the Center of Innovation for Biomaterials in Orthopaedic Research (CIBOR), part of Wichita State University, which certainly couldn't hurt.

Michigan. In response to the crash of the domestic automotive industry a few years ago, Michigan decided to go full throttle and commit itself to building up a medical device cluster. As a result, Michigan is among the fastest-growing life sciences states in the country and employs more than 30,000 people in the life sciences field, according to the Michigan Economic Development Corp. And it also doesn't hurt that medtech giant Stryker calls Kalamazoo, Michigan, home for its global headquarters. In addition, the state also benefits from having a range of established suppliers and service providers that have been serving the medical device industry for years. But don't forget those automotive suppliers looking for opportunities. Their manufacturing expertise and likely competitive prices, if they invest the time and money in quality systems for the medical market, could potentially be a boon for the industry. "The automotive industry is so strong and the manufacturing know-how is so advanced that the medical device industry is a really good place for it to emerge from that basic knowledge of innovation and manufacturing," Christophe Sevrain, CEO of the consulting firm CJPS Enterprises LLC told MPMN in a regional focus on Michigan last year. "Like they say here, if you can make it in the automotive industry, you can make it anywhere. The margins are so tight, the quality systems so stringent, and the cost structure is so strict that the industry has had to be very good at manufacturing."

Ohio. Although it boasts a rich manufacturing history that was perhaps at its apex in the mid-20th Century, Ohio has fallen on hard times as industry has moved elsewhere. Building on this solid manufacturing base, however, Ohio, and the Cleveland area, in particular, has made a concerted effort to rebuild the region's economy and industry, with an eye on the medical device industry. And it seems to be working. At present, roughly 10 of the country's top 20 medical device manufacturers have facilities in the region, including J&J and GE Healthcare, among others. Of course, there is an ample number of suppliers that are more than happy to cater to these powerful companies. But perhaps Ohio's greatest asset is its concentration of research hospitals and academic institutions. Chief among them, of course, is the renowned Cleveland Clinic, as well as Cleveland Clinic Innovations (CCF). "CCF has been a leader spurring medical device design and development in the Cleveland area," Brian Hrouda, director of sales and marketing at medical device supplier Norman Noble Inc. told MPMN earlier this year for a regional focus on Ohio. "The CCF Innovations and Medical Device Solutions teams have been very successful at implementing the steps required to commercialize new medical device technologies."

Texas. A high-tech hub, Texas has enjoyed playing a leading role in the semiconductor industry. But as the semiconductor industry began to lose some steam several years ago, the state and its semiconductor companies started looking for other revenue opportunities and set their sights on the medical device industry. Backed by generous state support and incentives, the medical device industry has begun to take off in the Lone Star State. These state initiatives and incentives, coupled with the growing number of high-tech local semiconductor companies lending their expertise to medical applications, has established Texas as fertile ground for medical device manufacturing. In fact, medical product manufacturing contributed roughly $3.97 billion to the state's economy and currently employs more than 11,800 people. Efforts have also paid off in terms of attracting some of the big guns in the business: Medtronic Inc. announced that San Antonio would be home to its Diabetes Therapy Management and Education Center while Becton, Dickinson and Co. also disclosed that it would be bringing its North American professional services headquarters to the state. Maryland-based Hanger Orthopedic Group relocated its headquarters in September to Austin as well. Also benefiting the local medical device industry has been a large investment and effort to commercialize innovative technologies. "What Boston and California had that Texas didn't early on was a foundation of entrepreneurs and startup companies that could make it to that next level," Greg Crouch, life sciences business director at National Instruments told MPMN last year in a regional focus on Texas. "Where Boston and California were very efficient was bringing technology out of the university and through commercialization groups,the state of Texas is just now lowering the barriers of moving technology intellectual property through the commercialization group out into the industry."

All of these states are really putting the time and money into developing these medical device clusters. And, as a result, I think they'll probably all be successful to varying degrees. But as for which region will be the next big contender, I think it comes down to, as they say in reality competitions, which one wants it the most. To me, that region is Ohio. The state has really committed to developing the cluster and put its money where its mouth is. With the opening of the Cleveland Medical Mart, assistance and encouragement to medtech startups, the presence of the Cleveland Clinic, and pioneering research being conducted at Case Western and other local universities, the state has laid sturdy groundwork for a substantial medical device cluster. Of course, it's a bit soon to tell. Which state do you think will be the next big contender? And did we omit anyone? Let us know in the comments section below or feel free to email. -- Shana Leonard