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Research Note

Effects of medical device legislation on innovation within Australian manufacturing companies

Alexander Svistounov
PhD Candidate School of Mechanical Engineering University of Adelaide Adelaide SA, Australia

Colin Kestell
Senior Lecturer School of Mechanical Engineering University of Adelaide

Karen Adams
Lecturer Research Education Programs Graduate Centre University of Adelaide

Kristin Munday
ESL Coordinator Faculty of Engineering, Mathematical and Computer University of Adelaide

Abstract

Unlike many other industries in Australia, manufacturers of medical devices must meet strict regulatory requirements to be permitted to supply their products on the consumer market. With the introduction of the Therapeutic Goods Act and Medical Device Regulations, Australian manufacturers became legally obligated to follow specific principles of quality systems implementation in design, manufacturing and product delivery processes. A survey was conducted to determine manufacturers' perceptions of the effects of the regulation on the product development practices within their companies.

Results of the survey showed that the majority of respondents are anticipating or have already experienced mostly positive effects of the legislation on quality, reliability and safety of products and legal security of their companies. However, the respondents estimate that the legislation will negatively affect the cost of innovation and delivery time of new products to the market.

Keywords

innovation, legislation, medical devices, rehabilitation equipment

Article Text

The Australian medical device (MD) industry is regulated by the Therapeutic Goods Act 1989 (TGA) (Office of Legislative Drafting, 1989) and Medical Device Regulations 2002 (MDR) (Office of Legislative Drafting, 2002). In addition to high risk medical devices, such as devices that are used for medical treatment and diagnosis of diseases, soon this legislation will also control the supply to the market of previously exempt low-risk medical devices including a broad range of rehabilitation equipment.

There is a clear need to ensure the quality and safety of medical equipment including low risk medical devices. However, despite the intended overall advantageous outcomes of the legislation, such as the increased safety of products and the removal or reduction of barriers in international trade, the imposition of compliance and aftermarket surveillance requirements may well stem innovation and place a substantial resource burden on small and medium enterprises (SMEs).

This could force some small Australian manufacturers to cease design, innovation and development of new products and to become suppliers for local or overseas larger manufacturers.


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References

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