The challenges and opportunities facing innovative companies are constantly changing, so it is important to keep track of trends in this business environment. The panelists offered numerous insights related to the current state of biomedical innovation.

Venture capitalists and large corporations have always been wary of making risky investments in long-term projects, and these projects have become even more unappealing to investors in recent months due to the economic downturn. Thus, innovators must choose their projects carefully so that the process of product development can be completed in a relatively short time.

Clinical trials are a major hurdle for which innovative companies must be prepared. For some products, such as drug-eluting stents, over ninety percent of development costs are related to clinical trials. Over the last few years, it has become easier for companies to outsource clinical trials in order to limit costs.

In today’s economy, credit is difficult to come by, so a number of biomedical companies are changing the way in which they do business. In the pharmaceutical industry, there have recently been a number of mergers, which are distracting and reflect a conservative approach to innovation. It is difficult for many scientists to find funding because national agencies do not have enough money to support any research beyond that which is related to fundamental science.

Successful innovation begins with the identification of a problem, not with the proposal of a solution. The initial solution to a problem is often not the best one, so companies must be willing and prepared to change their approach in response to new ideas. Economic difficulties might actually promote innovation by ensuring that only the best companies survive.