Wearable Medical Technologies for Better Health
Wearable Medical Technologies for Better Health
Business Model Description
Facilitating early action and remote monitoring in health through mobile health applications syncing with wearable devices for better health in monitoring conditions such as diabetes.
Expected Impact
This IOA will facilitate early diagnosis and reduce the pressure on healthcare facilities, contributing positively to health and wellbeing indicators
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Turkey: Eastern Anatolia Region
- Turkey: Central Anatolia Region
- Turkey: Southeastern Anatolia Region
Sector Classification
Technology and Communications
Development need
Technology is a cross-cutting sector for many SDGs. In terms of its performance on SDG 9 (Industry, Innovation and Infrastructure), Turkey faces major challenges. The country performs well-below the global long-term objective in indicators such as Expenditures on Research and Development and the Number of Researchers (per thousand employed people). (1)
Policy priority
The 11th Development Plan, the Sustainable Development Goals Evaluation Report, 2020 Annual Presidential Program and the 2019-2023 Strategy Plan of the Ministry of Industry and Technology all highlight the importance of technology for the achievement of the SDGs and stress the need to digitally transform the country’s economy as a prerequisite for competitive production.
Gender inequalities and marginalization issues
According to the Women in Tech Index, the percentage of female employment in technology is at a mere 9.91% in Turkey. 37.11% of STEM graduates are female. There is a gender pay gap of 8.42% between men and women in the tech industry. This necessitates policies and business models that promote the employment of women in technology with fair wages. (13)
Investment opportunities
The government intends to mobilize investment momentum in this sector. Existing incentives are offered by TUBITAK, KOSGEB, The Ministry of Industry and Technology and the Development and Investment Bank of Turkey. The importance of investing in this sector is increasingly evident with the outbreak of the COVID-19 pandemic, necessitating remote access to vital services
Key bottlenecks
The ability to compete on prices with imported technological products and services already present in the Turkish market; infant-industry problems. Ambiguity of the regulations in some of the latest areas of development such as IoT. Issues related to cyber security and data privacy.
Technology
Development need
COVID-19 has demonstrated the importance of wearable medical technologies and remote monitoring services for the treatment of high-risk group patients with chronic health conditions.
Policy priority
The production of medical devices and technology are among the priority sectors listed in the 11th Development Plan
Gender inequalities and marginalization issues
According to the Women in Tech Index, the percentage of female employment in technology is at a mere 9.91% in Turkey. 37.11% of STEM graduates are female. There is a gender pay gap of 8.42% between men and women in the tech industry. This necessitates policies and business models that promote the employment of women in technology with fair wages. (13)
Investment opportunities
"The production of medical devices and watches with precision and optical instruments” is among the priority investment areas listed by the Ministry of Trade. As such, they benefit from Region 5 Incentives such as tax reductions and VAT exemptions, credit and insurance support
Key bottlenecks
The ability to compete on prices with imported technological products and services already present in the Turkish market; infant-industry problems.
Electronic Manufacturing Services and Original Design Manufacturing
Pipeline Opportunity
Wearable Medical Technologies for Better Health
Facilitating early action and remote monitoring in health through mobile health applications syncing with wearable devices for better health in monitoring conditions such as diabetes.
Business Case
Market Size and Environment
> USD 1 billion
> 25%
The global wearable medical device market size is expected to reach US$93.19 billion by 2027. It is projected to progress at a compound annual growth rate (CAGR) of 27.9% during the forecast period. (7)
Indicative Return
> 25%
Interviewed investors already active in the Turkish medical technology sector target an IRR level of 40%.
Investment Timeframe
Medium Term (5–10 years)
Medical devices need clinical and regulatory approval. A major component of this is the regulatory process, which varies based on the risk level of the product. The products also need to be tested and certified by accredited laboratories, separate procedures apply for exports to the EU
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Wearable technologies incentivizes behavior that reduces hospital visits and re-admissions due to poorly managed personal health.
The COVID-19 pandemic has demonstrated the importance of wearable medical technologies and remote monitoring services for the treatment of high-risk group patients with chronic health conditions.
Gender & Marginalisation
Lack of or reduced access to health access to rural population, women, inmigrants, among others
Women are currently underemployed in the technology sector in Turkey, with only 9.91% of the workforce in this sector being female. This is trend is not solely driven by the lack of female STEM graduates, as 37.11% of STEM graduates in Turkey are female. (13) -continued below
Increased investments and job openings within this sector can help remedy this employment gap. However, it comes down to targetted policy interventions and incentives to promote this initiative. Companies within this business model should be encouraged to hire female STEM graduates.
Expected Development Outcome
Reduce the number of hospital visits and the overall stress on the healthcare system
Adopt proactive measures for disease prevention/intervention and improve outcomes in patient health and well-being
Reduce healthcare costs per patient due to systematic monitoring
Gender & Marginalisation
Reduce health access gaps for rural population, women, inmigrants, among others
This IOA will increase the job opportunities for women and decrease the gender wage gap in the technology sector employment if the appropriate policies are implemented.
Primary SDGs addressed
3.4.1 Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease
3.b.2 Total net official development assistance to medical research and basic health sectors
16.1% (1)
$2.16 billion (8)
9.3% (1)
9.5.1 Research and development expenditure as a proportion of GDP
9.5.2 Researchers (in full-time equivalent) per million inhabitants
0.96% (1)
1,156.51 per million people (2015) (8) 4.01 per thousand (1)
3.7% (1)
15 per thousand (1)
Secondary SDGs addressed
Directly impacted stakeholders
People
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Outcome Risks
Cyber risks: If data transmitted via wearables is not properly secured, companies can face repercussions.
Bodily injury risks: Malfunctioning devices can cause injuries, illnesses and even death of wearers or patients. Device manufacturers may face a product liability lawsuit.
Impact Risks
Execution Risk Efficiency Risk
Impact Classification
What
Important, positive outcome: facilitation of early diagnoses and reduced number of healthcare.
Risk
Medium Risk (Impact might not occur as intended if the devices are not effective. It might potentially cause harm)
Impact Thesis
This IOA will facilitate early diagnosis and reduce the pressure on healthcare facilities, contributing positively to health and wellbeing indicators
Enabling Environment
Policy Environment
(11th Development Plan): The production of medicine and medical devices are among the priority sectors listed in the 11th Development Plan
(2020 Presidential Program): Pharmaceuticals and medical devices are among the priority sectors listed in the 2020 Presidential Program for their competitive potential in the global market, ability to enhance scientific research throughout the country, improve patient well-being, train and engage with qualified human resources and provide secure employment throughout the country
(2019-2023 Strategic Plan of the Ministry of Health): In the 2019-2023 Strategic Plan of the Ministry of Health constraints within the Turkish health system such as the inefficient use of information technologies, the limited scale of R&D in healthcare throughout the country, and the underemployment of health personnel resulting in an inability to meet service and institutional demands are emphasized
Financial Environment
Financial incentives: TÜBİTAK R&D Projects Support Program. The Ministry of Industry and Technology and The Development and Investment Bank of Turkey established "The Technology and Innovation Fund" under the Turkey Development Fund
Fiscal incentives: The production of medical devices and watches with precision and optical instruments is among the priority investment areas listed by the Ministry of Trade. As such, they benefit from Region 5 Incentives such as tax reductions and VAT exemptions, credit and insurance support
Regulatory Environment
(Regulation): The Official Newspaper issue no. 29001, dated 15th of May 2014, introduced the “Medical Device Sales, Advertisement and Marketing Regulation”
(Regulation): The Social Security Institution, Medicine Refund Regulation and the Alternative Refund Regulation govern reimbursements and the coverage of medical expenses
(Regulation): Law #5746 – Law on Supporting R&D Activities extends the scope of supports and incentives on R&D, innovation and design activities, activities carried out in technology development zones, and decisions by the Council of Ministers
Marketplace Participants
Private Sector
In 2017, there were 3,315 firms and 44,667 dealers in total in the medical devices sub-sector of Turkey. Domestic and international banks.
Government
The Ministry of Health & TÜBİTAK & The Ministry of Industry and Technology
Non-Profit
ARTED (Investigative Medical Technology Producers Association), SADER (The Foundation for Medical Equipment Producers and Representatives), SEİS (Turkey Health Industry Employers Union) and TÜMDEF (The Federation for all Medical Device Producer and Supplier Foundations)
Target Locations
Turkey: Eastern Anatolia Region
Turkey: Central Anatolia Region
Turkey: Southeastern Anatolia Region
References
- (1) SDG Index & Dashboard, 2020, https://dashboards.sdgindex.org/profiles/TUR/indicators
- (2) Sustainable Development Report Dashboard 2020, OECD Members, Turkey, https://dashboards.sdgindex.org/?fbclid=IwAR1tzYVKRXvPD2mwfvhf-mLTGGQEjA76y_HlrprWhSzNYZcqrLZMLXzRIcI#/TUR
- (3) 11th Development Plan http://www.sbb.gov.tr/wp-content/uploads/2020/03/On_BirinciPLan_ingilizce_SonBaski.pdf
- (4) 2020 Annual Presidential Program, http://www.sbb.gov.tr/wp-content/uploads/2019/11/2020_Yili_Cumhurbaskanligi_Yillik_Programi.pdf
- (5) Sustainable Development Goals Evaluation Report, http://www.surdurulebilirkalkinma.gov.tr/wp-content/uploads/2020/03/Surdurulebilir-Kalkinma-Amaclari-Degerlendirme-Raporu_13_12_2019-WEB.pdf
- (6) 2019-2023 Strategic Plan of the Ministry of Health, http://www.sp.gov.tr/upload/xSPStratejikPlan/files/Anobg+StratejikPlan2019-2023.pdf
- (7) Grandview Research, 2020, https://www.grandviewresearch.com/press-release/global-wearable-medical-device-market
- (8) SDG Tracker, 2020, https://sdg-tracker.org/
- (9) Business Insider, Wearable Technology Medical Devices, https://www.businessinsider.com/wearable-technology-healthcare-medical-devices
- (10) KOSGEB, Stratejik Ürün Destek Programı, https://www.kosgeb.gov.tr/site/tr/genel/destekdetay/6492/stratejik-urun-destek-programi
- (11) Travelers, How Companies Can Help Reduce Risk from Wearables https://www.travelers.com/resources/business-industries/technology/how-companies-can-help-reduce-risk-from-wearables
- (12) The 2019-2023 Strategy Plan of the Ministry of Industry and Technology, https://www.sanayi.gov.tr/strateji2023/sts-ktp.pdf
- (13) Honeypot, Women in Tech Index, 2018 https://www.honeypot.io/women-in-tech-2018/
- (14) Turkis Statistical Services, 2021. https://cip.tuik.gov.tr/#