New report reveals skills gaps impeding healthtech innovation

A new report from EIT Health reveals significant skills gaps that are hindering the growth of the healthtech innovation sector in Europe. The study was conducted by the European Investment Fund (EIF) and the WorkInHealth Foundation, created by EIT Health.  

EIT Health Ireland-UK, a Co-location Centre of EIT Health, which is part of the European Institute of Innovation and Technology, a body of the European Union, has launched a new report titled ‘Addressing Skills Need in the European Health Sector’. The report, This report, a collaboration between the European Investment Fund (EIF) and the WorkInHealth Foundation, is based on a survey of 472 venture capital (VC) fund managers across 371 EU-based VC firms. It sheds light on the skill shortages and investor attitudes that are impacting the European health innovation ecosystem. 

The study highlights several critical gaps in both soft and hard skills. Among the soft skills, leadership and management are perceived as the most crucial yet lacking in the sector. Other essential soft skills gaps include entrepreneurial skills, strategic planning, communication, and business development. On the technical side, major gaps include expertise in STEM fields, data analysis, and a thorough understanding of regulatory environments. 

The report also addresses diversity within healthtech start-ups, noting that while gender diversity is improving and surpasses that in the broader tech sector, nearly a quarter of VCs report no female representation at the partner level in their firms. Diversity is considered essential for strategic growth, but there is still significant room for improvement in this area. 

Jean-Marc Bourez, CEO of EIT Health, said, “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.”  

In December 2023, EIT Health was selected as the coordinator of the Skills Partnership for the European Health Industry, a new industry-led Pact for Skills in healthcare. This partnership, part of a broader initiative involving 14 sectors across Europe, aims to upskill up to six million people. The partnership focuses on enhancing the skills and education of healthcare workers, with significant involvement from over fifty organisations including Ireland-based EIT Health partner University of Galway. 

Graham Armitage, Managing Director, EIT Health Ireland-UK, said, “This report highlights critical skill gaps that need to be addressed to ensure the continued growth and competitiveness of the European healthtech sector. At EIT Health, we are committed to working closely with our partners to drive innovation by supporting the development of a skilled and diverse workforce.”  

Emphasising the importance of addressing these skill gaps to ensure the sustainable growth of the healthtech sector, Dr. Natalie Walsh, from the University of Galway, said, “This report provides invaluable insights into the specific areas where we are falling short, particularly in both soft and technical skills.”

“By drawing on the collective expertise highlighted in the report, we are implementing targeted strategies that include education, training, and fostering diversity to build a more resilient and innovative workforce. Our response is a coordinated effort to harness the full potential of our talent pool, ensuring that Europe remains at the forefront of healthcare innovation,” she added. 

The study also delves into the strategies needed to address these gaps, emphasising a multifaceted approach that includes hiring, outsourcing, training, talent retention, and mentoring. These strategies are particularly relevant for Ireland, a country that is highly competitive in areas like pharmaceuticals, medical devices, and personal protective equipment (PPE). 

The report, prepared by EY on behalf of EIT Health, combines quantitative and qualitative insights from venture capital firms, start-ups, and industry experts. It offers a comprehensive analysis of the current talent landscape in European healthtech and proposes actionable solutions to bridge the identified gaps. 

Download the report here.