Medical device sector performs amid challenging times

With the total export of Taiwan's medical devices expected to reach US$1 billion in 2009, the sector is doing well amid the current tough economic climate. It is expected to continue to perform well with advantages such as the government's continued investment, related regulations that are similar to those of the U.S. Food and Drug Administration, and academia's innovation and R&D prowess. The market with long known "difficult" regulatory environment is also improving with expanding communication with counterpart agencies in the US and the European Union as well as improving ties with China.

However, obstacles remain to be resolved. The Taiwanese medical devices sector still has few products that generate high profits, rarely conducts pre-clinical and early-stage clinical trials, and enforces laws and manufacturing standards that are not yet in line with international practice. There is also a lack of companies that can produce high-end biotech medical equipment and devices. These weaknesses could potentially prevent Taiwan from grabbing a share of the global biotech manufacturing market, which was worth US$800 billion in 2006 and is expected to reach US$2 trillion in 2020.