From the pharmacy of the world to today’s key industry health care - Thoughts on the German Industry Day 2023

Germany was once considered the pharmacy of the world. That meant that the country was in a pioneering role when it came to innovations but also to the export of health products.

Globalization has led - and rightly so - to a situation where the health industry is now spread all over the world. Today, global companies organize their value chain across borders - and Fresenius is no exception. We are present in over 100 countries. This international approach allows us to work more efficiently, for example also with national health authorities, and also closer to our customers - for the benefit of patients around the world. At the same time, this approach leads to dependencies, which we have not only experienced during the COVID-19 crisis. Today, too, we see a shortage of more than 400 medicinal products in Germany, including vital medication for cancer treatment, antibiotics, and fever-reducing medicines for children.

The new geopolitical situation requires a rethink on the part of politics and industry.

Increasing geopolitical tensions and protectionist tendencies are showcasing these dependencies and pose increasingly greater challenges for globally active companies. This altered geopolitical situation, this new world order, requires a rethink on the part of politics and industry.

I see three core tasks here:

1.  More openness to technology and targeted incentives for innovation: Europe has a long tradition in research and innovation but has been losing ground to the U.S. and Asia for decades, especially when it comes to the targeted application and scaling of these findings. Political and economic frameworks will decide where innovation takes place in the future - this is where smart industrial policy is needed.

2.  Faster progress in digitalization: 20 years ago, we were already discussing the electronic patient file in Germany. It is still not a reality. For example, the U.S. and Denmark show how this can be realized successfully. With initiatives like these, we can make it easier for patients by developing a seamless health ecosystem. This saves time - valuable time that can be better spent on the well-being of patients.

3.  A structural "de-risking" in trade policy: A further build-up and expansion of free trade agreements and technical harmonization arrangements can create a helpful framework to reduce the risks of geopolitical tensions and state protectionism for businesses.  

The healthcare industry is an economic sector with attractive prospects and high social relevance.

The healthcare industry plays a key role here. In Germany, more than 1 million people are employed in the industrial healthcare sector. Looking at the German healthcare sector in total, 5.8 million people work here, according to the German Ministry of Health. Almost 10 percent of all exports come from this sector. This is another reason why a rethink is called for. The health system in Germany must no longer be seen as a cost factor in the social system, but as an economic sector with attractive prospects and high social relevance.

This is the only way we can thrive in the international competition with the U.S. and with China, for example. This was also the focus of this year's German Industry Day organized by the Federation of German Industries (BDI). It became apparent that many industries are facing similar challenges and see the solution in a closer interlinking of industry and politics - in an ongoing exchange to strengthen the attractive economic sector of health again. Germany may not be able to build on its former role as the pharmacy of the world, but it may be able to build on its tradition as a driver of innovation.

#TDI23 #Innovation #FutureFresenius