When a company enters another system

By Lily Lin, CEO, Excellence First Enterprise Consultancy.

a desk with a screen and sheets off paper

Over recent weeks I have been meeting life sciences parks and companies in China. One question kept recurring. What happens to a company that has built substantial capability at home once it begins to operate inside another system?

For some companies, looking internationally is not a response to something missing at home. Many Chinese firms have developed real depth in research and product development over the past decade, with universities and clinical resources supporting the innovation environment around them. Looking outward can follow from having built something with relevance beyond the domestic market.

Operating in another country asks for a different kind of preparation. A company needs a clear purpose for entering that market and a realistic view of what remains unresolved before external specialists become involved.

Medical devices bring this distinction into focus because the distance between technical capability and being able to operate effectively elsewhere is relatively easy to see. A manufacturer that has taken a product into Europe through CE marking has completed a demanding process and has good reason to treat it as evidence of international experience. That CE-marked status may also allow the device to continue to be placed on the Great Britain market within specified transitional periods, depending on the device and regulatory route. The MHRA has consulted on proposals for indefinite recognition of some CE-marked devices. But regulatory access is only one part of market readiness. The evidence a UK health system will want to see before considering adoption is different again, while intellectual property, data governance and contracting structures raise questions of their own.

I have seen the far end of this in the UK. A company arrives with regulatory experience, strong manufacturing, an established sales record and a compelling technical case, and finds that these do not necessarily answer the questions a professional adviser, commercial partner or health system asks next. These are not questions about whether the technology is good.

They are questions about how to operate across systems.

Some of the preparation involved is technical and reasonably visible. Regulatory pathways can be researched, legal structures designed, data requirements mapped. Harder to recognise are the assumptions every innovation ecosystem develops about how serious conversations begin, how much preparation is expected beforehand and how quickly a relationship should move. People working inside a system rarely experience these as specialist knowledge. To them it is simply how business is normally done.

For someone entering from outside, those assumptions matter a good deal. The sequence of an approach affects the response it receives. The same conversation held later, once a company has clarified its objectives and assembled its evidence, can leave a different impression from one held too early. Decisions taken at the start about regulatory strategy, data architecture or partnership structure also shape what remains available afterwards.

The harder part is that none of this sits entirely on one side. A company entering the UK needs to understand the system it is entering, but the specialist supporting it also needs enough context to understand the company in front of them: how it makes decisions, what it has already achieved at home, and what constraints it is working within. Expertise inside one system is not the same as competence across two.

Most of the attention goes to the expertise brought into the room. The questions asked before anyone gets there may matter more.

Editor's note: Lily Lin leads the EFEC UK–China Life Sciences Innovation Hub, an EFEC initiative focused on improving the readiness and quality of cross-border life sciences collaboration. This article reflects observations arising from the Hub's work across UK and Chinese life sciences ecosystems and is intended to support informed discussion. It does not constitute legal, regulatory, clinical or commercial advice, or represent the official position of any organisation referenced.

 

Image: Preparing to operate across systems involves more than technical capability.



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