8/3/2019 American Competitiveness Agenda Info Graphic

1/1

SUSTAIN U.S. Leadership INMedical TECHNOLOGY

Currently, the U.S. leads in the production oflife-changing medical technology

87.5% of medical technologycompanies that foresee employmentgrowth in the future expect HIGHER

EMPLOYMENT GROWTH OUTSIDE THE

U.S. than in the U.S.4

While total medical technology tradehas increased signicantly, THEBALANCE OF TRADE IN MEDICAL

TECHNOLOGY HAS DRAMATICALLY

DECREASED.5

The U.S. ranks 24TH OUT OF 38 OECDcountries in the value of its R&D taxcredit.8

The U.S. has a 27.6 PERCENTEFFECTIVE TAX RATE, compared to theOECD average rate of16.4 PERCENT.9

BREAKTHROUGH MEDICAL TECHNOLOGY (PMA) APPROVAL IN THE U.S.NOW TAKES NEARLY FOUR YEARS LONGERTHAN IN THE EU6

1. Medical Technology Innovation Scorecard, the race for global leadership, PWC, January 2011, page 8

2. Ibid.

3. NOTE: Accounts for direct and indirect employment. State Economic Impact of the Medical Technology Industry.Report prepared for AdvaMed by The Lewin Group, Inc. 2007

4. AdvaMed Industrial Competitiveness Survey: Key Findings, page 3

5. United States International Trade Commission DataWeb

6. Competitiveness and Regulation: The FDA and the Future of Americas BioMedical Industry, February 2011,California Healthcare Institute and The Boston Consulting Group, page 13

7. FDA Impact on U.S. Medical Technology Innovation A Survey of Over 200 Medical Technology Companies, JoshMakower, MD, Stanford University; Aabed Meer, MD-MBACandidate, Stanford University, page 28

8. OECD Science, Technology, and Industry Scorecard 2009

9. Paying Taxes 2011: The Global Picture, PWC and the WorldBank Group, November 18, 2010, http://doingbusiness.org/data/exploretopics/paying-taxes

Each additional month working

through the PMA process in the

U.S., a company incurs:7

BUTU.S. LEADERSHIP IS BEING CHALLENGED

FOR MORE INFORMATIONvisit

AdvaMed.org/Competitiveness-Agenda

Policies Put U.S. Leadership at risk

SO wHAT NOW?

SOURCES & FOOTNOTES:

The U.S. accounts for

of the globalmedical technology

market.2American jobs.3

TWO Million

The industrycreates

+14.2MONTHS

+

34.0MONTHS+53.7

MONTHS

+46.8MONTHS

$740,000PER MONTH

40 PERCENT

A Competitiveness Policy AGENDAFOR THE MEDICAL TECHNOLOGY INDUSTRY

SUSTAINED U.S.

LEADERSHIP INMEDICAL

TECHNOLOGY

Reform andexpedite the FDA

review process

Implement strategictax policies to level the

playing eld

Improve domesticcompetitiveness

and expandexports throughvigorous trade

policy

Develop

payment policythat supports

medicalinnovation

Improve theAmerican research &

development

infrastructure

Elevate innovationin the life sciencesas a government

priority

U.S. companiesdominate the roughly

global device industry.1

$350 billion

MEDICAL TECHNOLOGYEMPLOYMENT GROWTH

GREATER EMPLOYMENT GROWTHEXPECTED OVERSEAS

U.S.

12.5%87.5%

OUTSIDEU.S.

DECLINING U.S. TRADE BALANCE INMEDICAL TECHNOLOGY

U.S. R&D INCENTIVES REMAIN LOW U.S. CORPORATE TAX RATESREMAIN HIGH

0.4

0.0R&D

TAX

INCEN

TIVE

0.1

0.2

0.3

FRA

NCE

SPAIN

PORTU

GAL

CZ.REPU

BLIC

INDI

A

BRAZIL

U.S.

30

AVG.

0EFFECTIVE

TAX

RA

TE

(%)

10

20

N.ZE

ALAND

U.S.

GER

MANY

SPAIN

S.KO

REA

IREL

AND

CA

NAD

A

FRA

NCE

DELAY

BETWE

ENU.S.

AND

EU

APP

ROVAL 2004

2006

2008

2010

20

10

0

30

40

50

60

70

80

+1

0

+2

+3

+4

+5

+6

+7

+8

TOTALU.S.TRADE,USD

BILLION

S

TRADE

BALANCE,USD

BILLIONS

20011998 2004 2007 2010