Address by Mr. Noel Treacy, T.D.,Minister for Science, Technology & Commerceat the Medisa Medical Devices Conference -"Product Development - The Competitive Edge"Corrib Great Southern Hotel, Galway Thursday 9th November 2000

I am delighted to be with you all here in Galway this evening at this Dinner on the occasion of your National Conference. I have no doubt that your deliberations today and tomorrow will prove to be inspiring and rewarding.

The theme of your Conference this year - "Product Development - The Competitive Edge" - is one with which I can readily identify. Our national competitiveness has been fundamental to Ireland’s economic success over the past few years. In this, we have taken remarkable strides in a relatively short period, moving up the international Competitiveness League from 26th place in 1996 to 5th place this year.

The issues which impact on national competitiveness are many and varied, ranging over housing, social partnership, labour and skills supply, infrastructure, and so on. Addressing all of those issues, and so maintaining our "Competitive Edge", is a mission in which we are all continually engaged as we seek to ensure the continued success of our national economy.

In the midst of our economic success, and the good times that we are currently enjoying, it is sometimes easy to overlook the enormity of the change which has taken place here in Ireland in a relatively short space of time. In particular, I have in mind the radical transformation and expansion in our industrial base which has accompanied our economic performance. In less than a generation, we have moved from being primarily a producer of agricultural commodities to one of the most vibrant, export-led, economies in the world with a portfolio of products from very diverse sectors, many of which did not even exist in this country a decade or two ago.

The reasons for our economic success are nowadays frequently analysed in various quarters. And, when the success story that is Ireland’s industrial development over the past decade is written, it is likely that the healthcare industry will feature in a very big way, as one of those sectors which have been at the heart of our economic revolution. From a situation where we didn’t have a substantial healthcare industry, we have in a relatively short time developed to become a location of choice for healthcare enterprises, with a vibrant base of both international and Irish-owned companies.

The healthcare industry, of course, covers a wide range of activities, and within the industry, the medical device sector has become a very important player in our continuing success story. Leading medical device companies have selected Ireland as the location to develop, manufacture and market a wide range of high tech products for markets worldwide.

Eighty companies, including ten of the world’s top medical device companies, have located in Ireland, making it one of the largest industry sectors, employing over 16,000 people.

Galway, Sligo and Letterkenny are the focus areas for indigenous companies in the healthcare sectors. These companies will contribute significantly to the development of the BMW Region. There is a very strong Research & Development and high skill base evident in each of the companies.

There is a very strong linkage built up by indigenous Small and Medium sized Enterprises (SMEs) with Multinationals (MNCs) and the indigenous companies have proved they can work to international standards. A typical example is Biological Laboratories, an indigenous company in Ballina which provides a major infrastructural support to the healthcare sector.

The healthcare sector continues to face major challenges. Worldwide, the industry continues to undergo significant change, driven by factors such as healthcare reform, greater cost control, improved quality certification, increasing international harmonisation of regulatory activity, and buying power consolidation. These and other trends have made it essential for the industry to adapt.

But the potential rewards are also great. The medical device technology sector is buoyant, with estimated global sales last year of £100 billion, and annual growth in European markets of around 6%. The U.K. market alone is worth £1.6 billion.

Here in Ireland, the industry has demonstrated good use of EU S&T funds, both at company and campus level. These high technology companies, which are co-funded by Enterprise Ireland, have major interactions with various departments in the third level Colleges. The Programmes in Advanced Technologies, especially BioResearch Ireland and the National Laser Centre both here at NUI Galway, provide ongoing development support to your industry. They also assist industry in attracting overseas and domestic investment in high technology areas that lead to the establishment of new technology based start-up companies.

The Institutes of Technology at Sligo and Athlone also provide support through their Centres of Excellence for Engineering and Polymer Development. I’m delighted that NUI Galway has been approved for a new Biomedical Engineering building which will cost circa £15m. This is a major positive step for the further development of the healthcare sector.

Indeed, I want to acknowledge the contribution of our third level institutions to the development of the various industrial sectors, in particular, the medical device sector. In response to the needs of this sector for skilled personnel with focussed training, and education in industry-specific technologies, a number of academic institutions have initiated courses directed at your industry. These courses vary from Diploma to Masters level, and are offered by both Institutes of Technology and Universities.

I am delighted this evening to announce another development which will further enhance the links between the medical device sector and our third level institutions. MEDISA, who are our hosts here this evening, and who have organised this excellent conference, have decided to establish an Annual Student Award for Excellence.

The new prize will consist of a sum of £5,000, over an initial period of five years, and will be awarded for excellence in academic projects in courses relevant to the medical device industry. The first award will be made for projects completed in the 2000/2001 academic year. It is intended that the judging panel will consist of representatives from academia and industry, and will be chaired by MEDISA.

I commend MEDISA for this excellent initiative. Together with this series of successful conferences, which it has organised, it is a further example of the leadership which this group has shown in the past in addressing the needs of this industry sector.

I wish you well in both your deliberations here tomorrow, and I wish you well for the future years ahead.