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Germany's Reputation for Precision Creates Niche for Medical Technology

The nation's research facilities, universities and highly educated workers help to draw U.S. investment.

  [ 9/1/1998 ]  By: Bob Selwitz   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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In virtually all of Germany's 16 states, the production of precision medical instrumentation is part of a nationwide dedication to highly-skilled, "no margin for error" manufacturing.

Germany is the world's third-largest supplier of medical technology products, with sales totaling $13 billion.

Germany is the world's third- largest supplier of medical technology products, with sales totaling $13 billion.
And in the segment of electromedical devices, Germany is the world leader.

In addition to a technically-savvy work force, a number of U.S. firms have found an extraordinary level of cooperation among state and local officials both in launching new ventures, and in setting up a European base.

For example, in the ancient city of Aachen in the state of North Rhine-Westphalia, there is a series of seven technical centers that provide valuable business assistance.

The area also has one of Germany's highest concentrations of hospitals, providing medical manufacturing companies with a huge potential market.

"There are plenty of investment incentives to make it easier for companies to set up operations. Other assets include well-educated workers, and a particularly comfortable lifestyle."

-- Marcus Decker, spokesperson, Bavaria Ministry for Economic Affairs, Transport and Technology

One satisfied U.S. client is Rick Jory, whose Highland Ranch, Colo.-based Sandhill Scientific, Inc. produces diagnostic instrumentation specifically for gastroenterologists and colorectal surgeons..

In Aachen, Sandhill is testing a catheter that monitors gastrointestinal track functions. Now in his second year in Germany, Jory hopes to use his Aachen site as a beachhead for extensive European marketing.

Most important, he emphasizes, officials in Aachen "took out all the headaches and barriers that would make expansion difficult for a small company like ours."

Jory said Aachen's location -- in far western Germany bordering the Netherlands and Belgium -- and its medical infrastructure have also made an important difference.

In addition to the nearby Klinikum teaching hospital -- one of Europe's largest -- Jory is also pleased that the Helmholtz Institute "is right across the street" from Sandhill's facility.

Indeed, Sandhill has been awarded a $225,000 grant from the German government to conduct research and eventually commercialize products based on technology developed by Helmholtz.

Not to be outdone, the state of Niedersachsen (Lower Saxony), recently formed a partnership between Nicolai GmbH & Co. and St. Croix Medical of Minneapolis. The partnership will manufacture and distribute the company's Deaflance System, an implantable hearing restoration system.

Precision medical instrument production is also prominent in Bavaria, which is particularly well known for its extensive efforts in biotechnology.

"You'll find a lot of brain power here, not to mention a skilled work force that values craftsmanship."

-- Klaus Schorer, Regional Agency

"There are a tremendous number of research centers concentrating on biotechnology," said Marcus Decker, spokesperson for the state's Munich-based Ministry for Economic Affairs, Transport and Technology. "And, there are plenty of investment incentives to make it easier for companies to set up operations. Other assets include well-educated workers, and a particularly comfortable lifestyle."

In Baden-Wurttemburg in Germany's southwest, the absence of raw materials or viable agricultural land long ago forced residents to concentrate on craftsmanship, research and business skills.

At the heart of the state's medical technology production is the town of Tuttlingen, which Klaus Schorer of the Regional Agency for International Economic Cooperation says, "is the world capital of surgical instruments."

"On hand are an estimated 300 firms filing and polishing specialized medical devices.

"You'll find a lot of brain power here, not to mention a skilled work force that values craftsmanship. The area is also home to nearly a hundred post-secondary educational institutions and scientific research organizations."

Another technology center is the city of Halle en der Saale, the largest city of the centrally-located state of Saxony Anhalt.

Property is available in the new Science and Innovation Park, which is linked with advanced research institutes and state-of-the-art telecommunications networks.

Medical businesses should also not underestimate the appeal and potential of the New German Lander, the former East Germany.

"The interest level from U.S. precision medical instrumentation companies is very high," said spokeswoman Lorie Karnath, of the Industrial Investment Council of the New German Lander.

One such firm is the Galileo Corp. of Sturbridge, Mass., which purchased Leisegang -- a producer of photocolposcopy equipment -- in 1995.

 

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