1. Health Economy in Northern Germany and the Baltic Sea Region: what is in for the regions? Using Nordic-European synergies in co-operation Conference Smart Growth – Smart Specialisationin the BSR Malmö, Sweden 5-6 April 2011 Wolfgang Blank, BioCon Valley GmbH & ScanBalt fmba

2. Trends … Steel Railway Electronics Chemistry Petroindustry Automobile Information Computer Life Sciences Psychosocial health 19001950 1980 20002010 Opportunities & challenges: Scientific progress (stem cell research, molecular biology, diagnostics) Growing health awareness Ageing society Stability of social health care systems Source: NY Times, 2008 Source: Der Spiegel, 2008

3. Source: HBSC Survey 2005- 2006, Currie et al. (2008). Life style 2005-06 Bildquelle:www.keinfastfood.de

4. Demographic development Source: OECD Health Data 2009, OECD (http://www.oecd.org/health/healthdata).

5.  North Eastern Germany  Located in between metropolitan areas Berlin, Hamburg, Copenhagen  Population approx. 1,8 million (= Hamburg)  Area approx. 23.000 km ²  Approx. 80 inhabitants /km ²  Rostock largest city (200.000 habitants)  Maritime countryside with more than 1.000 km coast line and more than 1000 lakes Schwerin Greifswald Rostock

6. Comparison Germany vs. Mecklenburg-Vorpommern 14,9 17,5 20,1 22 10,6 16,9 22,3 26,5 1989200220122020 Year 0 5 10 15 20 25 30 Ratio (in %) GerM-V Development of senior population 65+ Quelle: Stat. Landesamt M-V, 2003, Prof. Hoffmann © ICM EMAU 2006 „Youngest Federal State“ „Eldest Federal State“

7. Age-related diseases in M-V Comparison 2002 vs. 2020 © ICM EMAU 2006 MenWomen Diabetes Type II + 20% (8.800) + 1% (500) Coronary diseases,... + 48% (1.600) + 32% (900) Stroke+ 53% (700)+ 27% (550) Cancer + 36% (1.750) + 13% (550) Dementia+ 67% (11.500)

8. From challenges to opportunities Average age: 71 years Dürer´s mother, 1514 Nordic VIP´s, ~ 2010

9. „Healthy“ Ageing Each second, today born girl will have the opportunity to celebrate her 100th birthday!

10. Senior workforce  Vita Needle Inc.  95% of staff senior citizens (part-time)  Average age 73  Some examples:  Rosa Finnegan, 93, 9 years  Bill Ferson, 86, 17 years  Dick Tompkins, 78, 2 years  „Retirement is a dirty word“  Vita Needle Inc.  95% of staff senior citizens (part-time)  Average age 73  Some examples:  Rosa Finnegan, 93, 9 years  Bill Ferson, 86, 17 years  Dick Tompkins, 78, 2 years  „Retirement is a dirty word“ http://www.vitaneedle.com

11. The Burden of An Ageing Population Health Care Spending in Germany Re: German igsf 2005 1.032 794 657 1.111 1.703 2.826 4.197 5.371 858 679 957 1.340 1.732 2.493 3.658 4.903 Age 1 10 20 40 50 65 75 90 From „burden“ …

12. … to „profitable business models“ 35,60 37,12 38,73 40,42 42,20 44,08 199819992000200120022003 Turnover in Bln. € of the Well-being Industry in Germany 0,95Health& Literature 3,66Pharmaproducts/ Cosmetics 4,06Health & Food 6,60Massages, Physiotherapy 11,07Health & Cures Health & Vacation 17,74Fitnes & Sports Course of baths 50 40 30 20 10 0 Bln €

13. Others Japan Europe (without Germany) USA Germany 10% 20 % 16% 43 % 11% 2006 Total Volume 260 Bln € Re: Frankfurter Allgemeine Zeitung, 01.07.2006 World market of Medical Technology It is a huge market … … with a high Innovation rate !!!

14.  North Eastern Germany  Located in between metropolitan areas Berlin, Hamburg, Copenhagen  Population approx. 1,8 million (= Hamburg)  Area approx. 23.000 km ²  Approx. 80 inhabitants /km ²  Rostock largest city (200.000 habitants)  Maritime countryside with more than 1.000 km coast line and more than 1000 lakes Challenges: -No big industry -Remote location within Germany -Limited financial resources -Demographic development Schwerin Greifswald Rostock

15. „Public Private Partnership“ © BioCon Valley ® GmbH · Greifswald / Rostock 15 Capital Company Land Mecklenburg-Vorpommern ~51% BioCon Valley e.V. ~27% Financial institutions ~20% BioCon Valley GmbH Non profit association ~160 members (companies, universities, research institutions, service providers, hospitals, hotels,...) BioCon Valley e.V.  Bundle forces and  Stimulate cooperation between research & industry  Promote regional/ international cooperation

16. Prevention/ Health promotion Health Tourism Silver economy (Successful ageing) Rehabilitation Food & nutrition Sectoral focus Blue (marine) biotechnology Green biotechnology (agriculture, nutrition) Red biotechnology Medical technology White (industrial) biotechnology 16 © BioCon Valley ® GmbH · Greifswald / Rostock

17. Employees in health economy Main Sector Ambulante / inpatient medicare Administration, chemist‘s, health and spa business, self-help Pre- service and supply industrie (handcraft, medical technology, pharmaceutical industry,...) Sub sectors and boundary area of the health care 61.745 13.279 5.790 5.444 86.258 ~ 15% of MV employees work in/for health sector! 17 © BioCon Valley ® GmbH · Greifswald / Rostock

18. MV in comparison (Wifor) Turnover MV: ~ 3.5 – 4 Bio. €

19. Masterplan Health Economy MV 2020 © BioCon Valley ® GmbH · Greifswald / Rostock 19 Health Care Primary sector Life Sciences (Biotech, Pharma, Medtech) Healthy Ageing Health services Health tourism Food and nutrition

20. Healthy ageing Masterplan Health Economy MV 2014 - 2020 © BioCon Valley ® GmbH · Greifswald / Rostock 20 Quality of life Work & productivity Health & wellbeing Education & Culture Living environment & mobility

21.  Stable health care systems affecting a population of approx. 85 Mio. people  More than 5 Mio. Employees in health care and related industries  Critical mass of innovative universities with world class basic science with a general strong focus on life sciences  Well educated, skillful and motived human ressources  Strong health care/pharma/ medtech industry with more than 2.000 companies Life sciences and Health Mode 3 clusters Co-location clusters Scientific fountains Mode 3 clusters Co-location clusters Scientific fountains Key drivers in Hot spots in

22. Regional hot spots in life science high low ScanBalt CompetenceRegion LSHM- CT-2004-503406: Benchmark analysis on quantitative and qualitative data

23. Cooperation between regions „Competence hubs“ „Competence Satellites“ ScanBalt catalyzer for interactions: Exchange of human capital, knowledge, innovation; EU FP7 proposals, joint projects; strategy development; …

24. European Strategy for the Baltic Sea  4 challenges (main focus areas)  environmental sustainability,  prosperity,  attractiveness and  safety / security.  10 horizontal actions  15 objectives (priority areas)  > 80 flagship projects Flagship ScanBalt Health Region

25. Flagship project „Baltic Sea Health Region“  Long title: “Set up cross-sectoral reference projects for innovation in health and life sciences”  Objectives:  … promotion of public health on a high level  … exploitation of modern life sciences  … innovations in science, technology and social science  Baltic Sea Region as a model for providing the basis for a knowledge-based economy and for implementing a shared strategy  Lead Partners:  BioCon Valley (Germany)  Lithuanian Biotechnology Association (Lithuania)  ScanBalt and ScanBalt Academy BSHR is an open structure, partners welcome!

26.  Political governance usually distributed in different ministries  Reimbursement schemes or business models vary between social systems and privately financed health systems  High market pressure for innovation in very different areas from high tech products to innovative but low tech services  Actors from separate sectors with different communication and business cultures Cross-sectoral communication and actions urgently needed Challenges

27. Action lines  Install communication & governance platform and start a sustainable, „directed“ (bottom up resp. top down) and cross- sectoral consultation process –Prio. 7BSR Stardust („Innovation“) –Prio. 12Northern Dimension („Health“) –Prio. 8ICT for Health („ICT“)  Initiate transnational strategy development process based upon regional consortia and interests  Initiate and support project consortia in common areas of interest  Create a macro-regional model for transnational cooperation in the strategically important area of health and life sciences

28. ScanBalt & Healthy Ageing Participation in Active for Life - Project –Establish cooperation platform –Align regional strategies for ageing and wellbeing ScanBalt Position Paper on Healthy Ageing –From Biological Fundaments to Clinical Solutions –Basis research, Population research, Development of products and processes, Public private partnership models –Developmental focus areas eg. Ageing Brain, Healthy food and nutrition, Technologies for Ageing people, Healthy Ageing at work, E-health

29. What is in for the regions? 19962006 Source: WifOR 2010 (www.hci-compass.com ); Database: BA, 2009; Fed. Statistical Office, 2009.www.hci-compass.com Importance of Health care related industries concerning employment

30. Health and structural fonds 2007 - 2013 Total Structural funds 347,8 Bio. € –Convergence (Phasing out)282.8 Bio. € 81,5% –Competitiveness55.0 Bio. € 16,0% –Territorial Cooperation 8.7 Bio. € 2,5% Investments in health –Direct health investment5 Bio. €1,4% –Indirect health investment?? –Not health investment??

31. 21. – 24. Sept 2011 10. ScanBalt Forum „10 Years ScanBalt BioRegion – Towards a Balanced Regional Development and Smart Specialization in the Baltic Sea Region” Thank you !

32. Global interview project Conference 2010 Göteborg, www.omep2010.org By courtesy: Bo Samuelsson, Göteborg

33. Current Impact Biotech Workforce Human Capital Risk Capital R&D Input „scientific fountain“ „co-location“ „mode-3“ North-West Russia Biotech North Poland Biotech Kalmar BioScience BioTeam- South Latvia Biotech MedCoast Scandinavia Medicon Valley Bio Turku BioCon Valley Lithuania Biotech Estonia Biotech ScanBalt – a string of competency clusters Helsinki Stockholm [Berlin] [Hamburg]

34. MV in comparison (Wifor)

35. Health and structural fonds 2007 - 2013 Health expenditures in all EU countries range from 4.9 to 10.7% of GDP Described in strategic reference framework and operational programmes –„Direct“ and „indirect health investment“ E.g. health infrastructure, e-health, inpatient care, access to healthcare by vulnerable social groups, emergency care, medical equipment, screening, health and safety at work, health promotion and disease prevention, education and training for health professionals –Non health sector investment with potential health gain

37. Health & wealth  “Health Economy” sector provides more jobs and generates more income than many “traditional” sectors, like automotive, agriculture or food industry.  Health Economy is a pillar of knowledge-based society, which allows the Baltic sea region to compete with Asia and the US.  Investment in health fosters long term growth and sustainability of economies.  Health Economy has proven to reduce the negative effects of the economic crisis and prepare for a time after the crisis.

38. Flagship Strategy Mission: “Set up cross-sectoral and transnational reference projects for collaboration and innovations in health and in life sciences in order to promote public health on a high and sustainable level and to make Baltic Sea Region a globally leading and prosperous meta- region within health.” Draft of strategy paper, to be published at ScanBalt Forum 2010 in Tallinn

39. Action lines  Install communication & governance platform and start a sustainable, „directed“ (bottom up resp. top down) and cross- sectoral consultation process –Prio. 7BSR Stardust („Innovation“) –Prio. 12Northern Dimension („Health“) –Prio. 8ICT for Health („ICT“)  Initiate transnational strategy development process based upon regional consortia and interests  Initiate and support project consortia in common areas of interest  Create a macro-regional model for transnational cooperation in the strategically important area of health and life sciences

40. Growth rate of the health care industry is above- average compared to the national economy German-Monitoring: Growth driver Health care industry GVA growth rate for the national economy and Health care industry * * * Database:2nd respectively 3rd extrapolation of the NA Ø 3,4% p.a. Ø 1,9% p.a. Source: WifOR 2010; Database: Fed. Statistical Office, 2009. GVA annual percentage change GVA national economyGVA health care rel. industry

41. ** In recent years the Health care industry has set up an above-average employment in Germany. German-Monitoring: Job driver Health care industry Growth rate of employment Employees in 1.000 Employment annual percentage change * Database:2nd respectively 3rd extrapolation of the NA Source: WifOR 2010; Database: Fed. Statistical Office, 2009.

42. Health – share of GDP Source: OECD Health Data 2009, OECD (http://www.oecd.org/health/healthdata).