A new report shows 89 percent - or $2.35b - of NZ's healthtech revenues were generated overseas. File photo. Photo: sinenkiy/123RF
The value of healthtech exports has more than doubled in the past decade to $2.6 billion from $1.27b, but investment is lagging behind global peers.
A report by Technology Investment Network (TIN) with partners Medtech-iQ indicates the healthtech sector is second only to fintech in tech sector exports, based on information collected from 233 New Zealand healthtech companies.
"After a period of rapid growth, New Zealand healthtech firms are adjusting to a more stable demand environment," report author and TIN head of research Alex Dickson said.
The healthtech sector's revenue grew 2.4 percent in 2023, with 89 percent - or $2.35b - generated overseas.
About 12 percent of total revenue was used to fund research and development.
"This hints at a play for longer-term, more sustainable growth," Dickson said.
"Established Kiwi firms like Orion Health, Aroa Biosurgery, and AFT Pharmaceuticals, among others, are building a broad spectrum of success, beyond the niche solutions and markets they started in."
But he said investment was lagging behind other developed countries, with a 10 percent increase to $66.8m invested in 2023.
"A pain point is the level of investment reaching early-stage companies, which is peanuts compared to the likes of Ireland, Denmark, and the Netherlands.
"Commercialisation of health products is incredibly capital- and time-intensive, even for the big guys, and $67m for an ecosystem of 200-odd companies is not sustainable."
The country reached peak healthtech investment of $92m in 2021, with mature start-ups collecting $72m across 11 later-stage deals, with an additional 16 early-stage deals at an average $1.2m per raise.
Medtech-iQ chair Diana Siew said more funding and investment was needed to help the sector grow.
"New healthtech solutions are emerging from digital twins, physics-based AI, wearable sensors, and biomaterials for regenerative medicine," she said.
"Another emerging area is co-designing technologies with communities. There's a global interest in community-led care that prioritises access and equity. Our Māori and Pacific partners can be leaders in the world-wide indigi-healthtech sector."