New research from the EIF and EIT Health reveals skills gaps impeding European healthtech innovation

A new report published today, from a study of 472 VC fund managers across 371 EU-headquartered VC firms, explores skill gaps and investor attitudes around these within the European health innovation sector. The study was conducted by the European Investment Fund (EIF) and the WorkInHealth Foundation. WorkInHealth is created by EIT Health, part of the European Institute of Innovation and Technology (EIT), a body of the European Union. 

 The full report can be accessed here.  

 Key findings from the study include: 

•  Healthtech investors perceive leadership and management as both the most crucial and the most lacking skillset in the European healthtech sector currently. 
• Other critical soft skills gaps in health innovation include entrepreneurialism and strategic planning. 

• The key major hard skills gaps are STEM expertise, data analytics, and regulatory expertise. 

• Diversity is considered a strategic necessity within healthtech. However, gender diversity is perceived to be improving within healthtech, and better than in the tech sector at large. 

• Nonetheless, nearly a quarter of VCs in the healthtech sector report no female representation at partner level in their own firms. 

• A multifaceted approach is required to address the diverse skills gap challenge facing Europe’s health innovation sector. 

 About the ‘Addressing skills needs in the European health sector’ report 

A combined quantitative and qualitative analysis drawing on perspectives gathered from hundreds of venture capital firms, start-ups, and industry experts, the report examines the critical skills and talent shortages within the European health sector, specifically in biotech, medtech, and digital health. The report was prepared by EY on behalf of EIT Health and leverages data insights from EIF’s flagship VC survey. 

It highlights the relationship between VCs and start-ups, specifically around the design and evaluation of start-up talent strategies, along with the technological advances that help cultivate a more productive and transparent investment relationship. 

The report also examines diversity within European healthtech start-ups. Diversity in healthtech start-up leadership teams is coveted by VCs. Gender disparities are less prominent in healthtech compared to other industry sectors, but diversity still needs improvement and effort to maintain and grow. 

The report identifies five critical soft skills gaps in European healthtech:  

• Leadership and people management 

• Entrepreneurial skills 

• Strategic planning 

• Communication skills 

• Business development and networking

And three major hard skills gaps: 

• Technical skills and STEM expertise 

• Data analysis skills 

• Familiarity with regulatory environments 

To address these gaps, five key strategies were highlighted in a series of interviews and roundtables: 

• Hiring 

• Outsourcing 

• Training 

• Retaining talent 

• Mentoring

Jean-Marc Bourez, CEO of EIT Health, comments: “This study, which draws on a remarkable breadth of VC expertise and attitudes, spotlights the challenges related to talent in the healthcare sector. The insights published in the accompanying report will contribute to shaping a more sustainable and resilient healthcare system in Europe.” 

Céline Carrera, Director Innovation & Transformation, EIT Health, and Chair of the WorkInHealth Foundation, comments:  “Our goal is to foster innovation and sustainability in healthcare by aligning sector needs with professional development. This report is an important step towards understanding the barriers to progress in Europe’s healthcare innovation sector, as we move towards building a resilient and future-ready workforce.”