German health start-ups need to catch up

A new report shows that Germany is lagging behind as a location for innovation in the healthcare sector, despite recent success stories from the Ruhr region and the development of the coronavirus vaccine.

The RAG-Stiftung and the German Startups Association today presented a new study on startups in the healthcare sector and the development of the Ruhr region as a healthcare location. Overall, Germany is lagging behind as a location for innovation in the healthcare sector. While 213 billion US dollars have been invested in healthcare start-ups in the USA over the past five years, only 6 billion US dollars have been invested in Germany. The report shows that 15.6 health start-ups per 100,000 inhabitants are founded in Israel and 7.7 in the USA. In Germany, the figure is only 2.2.

The Ruhr region has made a positive impression in the healthcare sector with success stories such as Emergence Therapeutics, the two most valuable German healthcare start-ups. In addition, the start-up Phenox, which only recently managed a major exit. "Nevertheless, it is clear that we are not yet exploiting the opportunities that exist for healthcare start-ups, which arise from the strong research or the excellent university hospitals in our region, for example," says Bernd Tönjes, Chairman of the Board of the RAG-Stiftung.

The RAG-Stiftung and the start-up association are therefore proposing measures for the region. Universities and research institutions should sensitize scientists to start-ups by offering industry-specific support. Science and entrepreneurship should be brought closer together through good networks. The foundation and the association also recommend a Seed & Scale program for start-ups in the healthcare sector. This should help founders to establish contacts with investors and become "fundraising-ready".