Baseline mapping of HealthTech businesses in the West Midlands.
This summer, we were fortunate to be able to commission the Economic Intelligence Unit of Professor Delma Dwight to research the HealthTech sector locally. We are grateful to EIU's researcher Lukasz Gasienica-Fronek for his diligence and to West Midlands Combined Authority for funding the research.
Given the source of funding, the research was limited to the area of the Combined Authority (the 7 metropolitan councils).
Why did we feel the need for this research? As many of us understand, it is difficult to access accurate data from official sources for sectors which cross over disciplines and activities. We have always found that SIC codes, for example, do not capture HealthTech businesses very well at all. Our view was that, without a reasonably firm understanding of the strength of the HealthTech sector in the West Midlands, it was proving difficult to reach all parts of the sector, advocate for the sector, and measure progress against our mission to help grow the sector in the West Midlands.
So, now we have some reliable data. The final report received this week from EIU tells us that there are 614 relevant HealthTech businesses, directly employing 14,000 workers and generating £5.2bn in GVA every year. Of course, as soon as it is published, this data needs updating as the sector evolves, and this is where we can add value to the research findings - by keeping the data up to date.
The sector is heavily oriented towards life sciences and digital health, with strong presence in data infrastructure, services and software development. Key sector verticals include Data Infrastructure Software and Services, SaaS for Healthcare, and Human Health Services. Nearly 91% of the identified companies were classed as Small and Medium Enterprises (SMEs), with a significant proportion classified as Micro-Companies (45%), highlighting the sectors entrepreneurial nature and need for targeted support, especially with scaling up.
There are concentrations of businesses within the 7-met area, which are mapped in the report. There is good read-across from having this picture of the sector's geography and our work on land availability for HealthTech businesses.
If you would like to know more about this research, contact David Kidney david@wmhtc.co.uk for more information.
Ideally, it would be helpful to have the date for the whole WM region. We have shared this report with the local authorities outside the Combined Authority and we would be delighted if they were to decide to commission similar research.