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Milestones for 2, 5 and 10 years have been identified to guide the future growth of the medical products manufacturing industry. The goals have been developed using the streams that constitute the Government’s $1.3 billion Modern Manufacturing Initiative:

  • Collaboration Stream: will bring together businesses, researchers and investors to build economies of scale and allow them to compete in international markets
  • Translation Stream: will support projects to translate good ideas into new or enhanced commercial outcomes
  • Integration Stream: will target the integration of local firms into global value chains.

 

Success at 2 years—by end of 2022

Success at 5 years—by end of 2025

Success at 10 years—by end of 2030

1. Overarching

  • Australia has made the right co-investments to set up medical products manufacturers for long-term success.
  • Supported by Government, the sector is unlocking commercialisation opportunities through co-investments in translation, integration and collaboration.
  • There are growing rates of private sector investment in medical product manufacturing.
  • Local manufacturing capability is growing for critical and specialist medical products.
  • Growing rates of domestic manufacturing are building on investments in translation, integration and collaboration.
  • Small firms have begun to scale and there are more mid and large sized businesses active in Australia.
  • Scaled firms are making more globally competitive products and providing them to the international market.
  • Australia’s manufacturers are globally competitive thanks to strong rates of commercialisation, integration and collaboration.
  • There has been significant growth in the medical products sector, driven by Australian firms successfully scaling.
  • Australia has a number of successful mid and large medical manufacturers companies conducting high-value activities onshore. These activities are driving increased jobs in the sector and delivering transformational economic outcomes for local communities.

2. Translating Australian research to provide a pathway to production

 

Helping manufacturers finalise translation of their research in Australia, to provide a pathway to full scale Australian production.

  • To unlock growth opportunities and target barriers to scale, co-investments have been made to support manufacturers to translate good ideas into commercial products in Australia.
  • Industry and government co-investment has been made in projects that help companies finalise their commercialisation steps so their products can be manufactured in Australia.
  • Co-investments have been made in facilities that allow companies to undertake first production runs and prototyping.
  • Increasing numbers of Australian businesses are finalising the commercialisation of their products in Australia.
  • There are a growing number of products being commercialised and manufactured in Australia, rather than licenced overseas. Increased rates of commercialisation are allowing more firms to seize high-value parts of the value chain.
  • Australian firms are taking advantage of co-investments to scale and expand their manufacturing footprint.
  • Through investments by industry and government, a clear pathway to commercialise Australian ideas has been developed.
  • Australia’s strong manufacturing firms are able to take more Australian ideas along this pathway.

3. Support greater access to local and international supply chains

 

Helping manufacturers access local and international supply chains, enabling manufacturers to get competitive products into global markets.

  • Co-investments have been made to help manufacturers get competitive products into global markets by supporting business access to local and international supply chains.
  • Industry and government have co-invested in projects that help firms expand and open new manufacturing operations in Australia.
  • Co-investments are helping businesses access the expertise they need to join supply chains.
  • There has been co-investment in activities which enhance the export capability of multiple manufacturers to share costs.
  • More Australian manufacturers are accessing domestic and international supply chains.
  • The volume and value of exports is growing and Australia is increasing its international competitiveness in the medical products sector.
  • Demand for Australian products is being driven by our reputation for high-quality, clean and safe manufacturing.

 

  • Australia is a leading manufacturer of advanced and high-value medical products that improve health and wellbeing outcomes in Australia and across the world.
  • Local manufacturers are firmly integrated into domestic and international supply chains.
  • Australian medical products are in high demand and able to command a premium price on the global market.

 

4. Driving collaboration across the manufacturing ecosystem

 

Supporting the development of vibrant manufacturing ecosystems that increase the commercialisation of good ideas and expand manufacturing output.

  • Growth opportunities through co-investments are being unlocked in vibrant manufacturing ecosystems.
  • Co-investments have been made in growing medical precincts and forming digital pathways for collaboration.
  • Connectivity across the sector is growing with increasing rates of commercialisation, supply chain integration and manufacturing output.
  • Co-investments are encouraging collaboration between firms at all points of the medical manufacturing value chain, by bringing pre-production, production and post-production activities together.
  • Shared knowledge, facilities, capabilities and skills are helping firms achieve scale.
  • These stronger manufacturing ecosystems are increasing the rates of commercialisation, supply chain integration and expanding manufacturing output.
  • Vibrant manufacturing ecosystems are bringing together all elements of the value chain. An abundance of collaboration is delivering high rates of commercialisation.
  • These ecosystems are generating ideas for new products, which Australian manufacturers are successfully commercialising. Strong ecosystems are delivering products which demonstrate a value proposition to meet global demand.
  • Collaboration is easy and effective for Australia’s medical product manufacturers.

Benchmarks of success

The medical products sector will achieve growth through increasing rates of research translation and commercialisation. Successful firms will translate ideas into high-value medical products manufactured in Australia. The medical products ecosystem will be underpinned by a vibrant and collaborative sector with large, medium and small businesses. Australian-based global businesses will nurture manufacturing capabilities and support strong domestic supply chains in packaging, distribution and sales. A stronger ecosystem will also ensure there are a variety of sources for products that serve our essential needs.

Expanding manufacturing capabilities will increase Australia’s export opportunities. With industry support, we will position Australia as a regional hub by leveraging our reputation for high‑quality medical products and our proximity to expanding Asian markets. Drawing on local expertise in tropical medicines and environments, Australian businesses will also capture opportunities to manufacture tropical medical products and other essential items.[41]

To measure progress against the vision set out in the road map, the following will be monitored over 2, 5 and 10 year periods, dependent on data availability:

  • number of new jobs in medical product manufacturing
  • increase in profitability
  • growth in medical products exports
  • increase in the number of new products brought to market
  • investment in the medical products sector.

This road map aims to take Australia into new and different medical product manufacturing activities. New and innovative approaches to capture pre and post production activities are under development and may be used to identify and capture this activity in future.

Funding available

The Modern Manufacturing Initiative is now open for medical product manufacturing projects that meet eligibility under its Translation and Integration streams.

Footnotes

41 Austrade, Northern Australia: Emerging opportunities in an advanced economy, 2017, p. 12 and 44, accessed 8 January.

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