ABSTRACT
This study explores how patent rules and economic factors affect the development of new medical devices, like heart monitors or surgical tools, in Europe. Using advanced computer models, we found that extending patent protection by 3 years through Supplementary Protection Certificates (SPCs) can boost companies’ innovation efforts by 13.7% (with 95% confidence between 12.9% and 14.5%). This increases the economic value of new devices by €25.6M (from €48.6M to €74.2M). High costs slow down innovation, while bigger market opportunities speed it up. Policymakers can use these findings to:
– Support SPC reforms to promote faster and stronger innovation in medical devices.
– Provide grants or tax breaks to reduce development costs, enabling earlier innovation.
– Enhance market access and trade policies to boost revenue potential, encouraging investment in new technologies. These actions could bring better medical devices to patients faster, improving benefiting healthcare and the economy. The following study provides a comprehensive analysis of these dynamics, beginning with an examination of the fundamental challenges facing innovators in the medical technology sector.
Peters, Andreas, Is Europe Hindering Medical Innovation? Unraveling the Patent Time Trap (May 29, 2025).
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