Medical Device Industry

The Hon. G.A. KANDELAARS (15:05): My question is to the Minister for Manufacturing and Innovation. Can the minister tell us how the government's investment in the medical device industry is providing opportunities for the South Australian economy?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (15:05): I certainly can, and I thank the honourable member for his question and his ongoing interest in manufacturing and industry in this state.

An ageing population in South Australia, and in many countries around the world, is resulting in an increased demand for medical devices that will improve the quality of life for people as they age. The ageing global population has created the need for such devices to aid in the care of an ageing population but also a need for devices that better address age-related ailments and disease.

In 2014, Australian Medical Devices: A Patent Analytics Report found that Australia had a small share of the global medical devices market, yet exhibited relative specialisation in medical device inventions. In terms of the relative specialisation index, Australia is one of the 14 out of 49 countries that rank positively on the scale for medical devices. We know that South Australia has a global specialisation in eye laser and imaging technology driven by Ellex which has been very successful in utilising research from the University of South Australia.

It makes sense that as a government we support sectors where we have a growing competitive advantage to maximise the economic opportunities for this state. That is why the government is committed to investing in growing our capability in medical device development and commercialisation. I have spoken in this chamber previously about the support the government has provided to the Photonics Catalyst Program, a program that seeks to commercialise the significant research capabilities this state has in photonics, and our medical technology program assists industry to commercialise medical devices here in South Australia.

I am pleased to be able to announce that the government is extending its support to the medical device industry through the establishment of the MedDev Alliance, the medical device alliance. Alliance members will work together to commercialise South Australian medical resources and seek out international markets for those products. The MedDev Alliance is a cluster made up of businesses focused on the specialisation of medical devices and includes representatives from leading companies in the field, including companies like Ellex and Austofix.

The alliance will grow the medical device industry here in South Australia. We know that South Australia already has a globally competitive advantage in this niche global market and, through this alliance, the underlying technology and expertise will be applied to other areas of medicine and have spillover effects into other industries. The state government has provided $750,000 over three years to be utilised to establish the alliance that will develop a growth-oriented medical devices industry in this state.

The alliance will foster links between industry to develop increased capabilities and critical mass, to enable South Australian-based companies to grow their profitability both in domestic and international markets, increasing skilled employment opportunities in this state as industry grows and, importantly, promoting South Australia as a centre of excellence for both domestic and international companies to attract new investment in partner organisations based in South Australia.

I understand that in its first year the alliance will be undertaking an in-depth local and global market analysis for products and services related to the medical devices sector and will identify market opportunities and the capabilities needed to exploit those markets. Research and analysis of medical device companies will also be undertaken to identify those that have the potential and are interested in collaborating to increase their export growth. The alliance will also develop an intellectual property and collaboration framework to ensure that companies within the cluster are protected, but can also very easily collaborate.

I look forward to keeping the chamber informed of the successes of the alliance as it grows opportunities for the South Australian economy, increases export opportunities for the medical devices sector, collaborates with businesses and researchers, and increases the international profile of industry specialisations found in South Australia that can develop in such a way.