From Hearts to Hips -- Indiana's Leadership in Medical Devices

The medical device industry is one of Indiana's most valuable economic assets and has made the state a nationally recognized leader in the health care sector. The industry is extraordinarily productive, generating more than $2 billion worth of exports in 2010 and employing more than 20,000 people in the state. The sector has propelled Indiana to the rank of the fifth largest state in percentage of medical technology industry employment.

As the nation continues to emerge from a deep and prolonged recession, Indiana's medical device sector is robust and provides a solid foundation for growth in the decades to come. But it also faces clear challenges. The current economic conditions have lowered demand for certain medical devices and have led some companies to modify their business models. Other challenges include the rapidly changing health care market, tax policies that discourage innovation, increasing regulatory uncertainty, a shift to overseas production, technological changes, and an increasingly competitive global device marketplace.

Prepared by FaegreBD Consulting for BioCrossroads, a public‑private initiative dedicated to growing, advancing and investing in the life sciences in Indiana, From Hearts to Hips – Indiana's Leadership in Medical Devices is the first report focused specifically on documenting the size, scope and economic impact of the medical device sector within Indiana. Compiled through a review of multiple sources of quantitative data, a survey of the state's medical device enterprises, and interviews with industry executives, this report provides baseline data on the sector and places it in national perspective. The report concludes with a summary of current and future challenges facing Indiana's substantial share of this increasingly global industry.