How EU Funding is Accelerating Innovation in med-tech through the Innovative Health Initiative (IHI)

Med-tech is one of the most innovative verticals in Europe. It ranked #2 in patent applications in 2021 and is backed by the EU through the Innovative Health Initiative (IHI). Aiming to drive large-scale projects to revolutionise healthcare, the IHI provides substantial funding and fosters collaboration between startups, SMEs, and large med-tech companies.

The med-tech industry in Europe is a significant vertical. With a market size of €150 billion and over 800.000 employees spread across 34.000 companies, of which 95% are SMEs, the industry plays a pivotal role in the European economy. Furthermore, the staggering number of 128.000 patents filed between 2012 and 2021 solidified its position as a leader and its vital role in driving technological advancement and healthcare solutions.

In response to its impact, EU representatives launched the Innovative Health Initiative (IHI). This public-private partnership is designed to drive large-scale projects that significantly impact healthcare delivery. The IHI provides substantial funding and fosters collaboration between startups, SMEs, Academia, regulators and large med-tech companies, creating a solid environment for European innovation.

The IHI aims to bridge the gap between the public and private sectors, leveraging resources from both to fund projects that can revolutionise healthcare. With a total budget of €2.4 billion over 7 years, the initiative has the financial consistency to support ambitious projects.

The Funding Opportunities

The IHI operates through two types of calls for proposals: one-stage and two-stage procedures. Public and private partners form consortia and submit joint proposals in the one-stage procedure.

On the other hand, the two-stage procedure starts with the EC initiating the definition of specific topics, which is backed by the Advisory Groups’ consultations. Then, the topics are launched as part of the Annual Work Programme. Such is the case of 2024’s topics:

• Topic 1: A city-based approach to reducing cardiovascular mortality in Europe
• Topic 2: Novel endpoints for osteoarthritis (OA) by applying big data analytics
• Topic 3: Modelling regulatory sandbox mechanisms and enabling their deployment to support breakthrough innovation
• Topic 4: Patient-centred clinical-study endpoints derived using digital health technologies

The Process.

During the 1st stage, the interested parties must form the Applicant Consortium (Academia, Hospitals, Regulators, SMEs, Patients’ Organisations, etc.) and then submit a short proposal.

For the 2nd stage, the successful Applicant Consortium must be joined by a pre-identified industry consortium, which must submit the full proposal together.

This year, the 8th call, a two-stage procedure, was launched on June 24, and the deadline for the first stage is October 10, 2024.

Startups and SMEs have the option to join the IHI either as part of the predefined industry consortia (without receiving funding) or later as public partners (with funding). This flexibility allows smaller companies to choose their level of involvement based on their resources and strategic goals. SMEs are fully eligible for funding, covering 100% of their eligible costs, which can significantly boost early-stage projects.

How fundingloop Can Support Applicants for This Initiative

Due to its application structure, navigating the complexities of the Innovative Health Initiative can present challenges. However, fundingloop is well-equipped to provide the necessary support.

As a seasoned advisory firm specialising in securing EU and VC funding for tech-driven businesses, fundingloop offers tailored assistance to med-tech startups and SMEs seeking to engage in IHI projects.

fundingloop’s comprehensive guidance throughout the application process, from forming strategic consortia to developing competitive proposals, ensures that clients optimise their chances of securing the financial resources needed to drive their innovative projects forward.

Here are some examples of fundingloop’s work. To connect with our experts, please write to us.