Challenges of Localization Requirements for Medical Device Manufacturers and Strategic Responses

Jiguang Liu; Dhakir Abbas Ali; Zheyuan Liu

Authors

Jiguang Liu Faculty of Business and Accountancy, Lincoln University College, Malaysia Author
Dhakir Abbas Ali Faculty of Business and Accountancy, Lincoln University College, Malaysia Author
Zheyuan Liu College of Water Conservancy and Civil Engineering, Shandong Agricultural University, Tai'an, Shandong, China Author

Keywords:

medical devices, localization, supply chain management, global strategy, market access

Abstract

As the medical device industry becomes increasingly globalized, manufacturers are facing significant challenges arising from localization requirements imposed by different countries. These requirements, while designed to foster domestic manufacturing and economic growth, create complexities in terms of regulatory compliance, cost structures, supply chain management, and intellectual property risks. This paper reviews the challenges associated with localization in the medical device sector, highlighting key issues such as regulatory complexity, rising costs, and the risks associated with protecting intellectual property. It further explores strategic responses employed by companies, including building local partnerships, investing in local research and development, leveraging digital technologies, and engaging in policy advocacy. The paper draws on successful case studies from companies such as Philips Healthcare, Medtronic, and Siemens Healthiness to provide actionable insights for companies looking to navigate the localization landscape. The findings emphasize the importance of a strategic, flexible approach to localization in order to ensure global competitiveness while complying with local regulations.

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