Massachusetts’ medical device hub: What you need to know

Massachusetts medical device exports grew 7.7% to $6.1 billion in 2018 — making up nearly a quarter of the Bay State’s total exports, according to the annual State of the Massachusetts MedTech Industry Report released by trade group MassMEDIC today.

When it came to the sheer portion of exports coming from medical devices, Massachusetts beat out all of the other U.S. states, including the other two medtech hub states of California and Minnesota. The statistic provides a major argument for why Massachusetts deserves to remain ranked among the top three states for medical devices, even as some other states lay claim to having more industry employment. (Here’s MDO’s roundup of how the top 10 states stack up.)

“It’s great to see the Massachusetts MedTech Industry’s gains year over year. MassMEDIC will continue to partner with our member companies to ensure ongoing success and growth of one of the state’s most vital industries,” MassMEDIC President Brian Johnson said of the report, which was prepared by professional-services firm Grant Thornton.

(MassMedic will once again host its Investor’s Showcase featuring 25 local startup companies at DeviceTalks Boston, June 5–6, 2019.)

Massachusetts is home to seven major medtech company headquarters, hundreds of industry establishments, and hundreds of millions of public and private dollars annually spent on innovation. The state is also a medical research powerhouse. Its research hospitals are among the best in the nation: Mass General, Brigham & Women’s, Harvard Medical School, Beth Israel Deaconess Medical Center, Boston Children’s, the University of Massachusetts Medical School, and Dana Farber.

Hospitals in the state received $2.89 billion in NIH funding in 2018, up from about $2.7 a year before.

Exports weren’t the only positive Massachusetts statistic listed in the report. Other highlights included:

• The average medical device industry wage in the state was $121,909 — highest in the nation and beating out states including California, Minnesota, Florida and Texas.
• Massachusetts leads on PMAs and 510(k) clearances when the numbers are adjusted for the size of state GDP, according to the report.

“Massachusetts’ success has been the envy of many– however, some of the metrics are leveling off. It’s important for the state to think about potential disruptors and how to stimulate the next wave of medical device innovation to ensure Massachusetts remains an industry leader,” said Pat Shafer, managing director – compliance risk, health care & life sciences industry at Grant Thornton.