So the industry has lacked profits and innovation prior to the Reigel v. Medtronic ruling of 2008? Senator Hatch has told us that innovation would suffer if we passed the Medical Device Safety Act of 2009. If I remember in my econ classes, a sector that is profitable invites new players into the market.

“Medical devices form one of the largest industries in healthcare sector with an estimated size of $250 billion in 2009 and a growth rate of 6%-8%. The industry has been outsourcing medical device manufacturing services for almost a decade now. This trend has brought about huge profit margins, which has attracted many new players. Outsourcing has helped medical device manufacturers reduce product development cost by 10% to 30%. The services outsourcing industry has also gained from the entry of new medical device manufacturing companies, as these players lack experience in the field.”