The WorkInHealth Foundation, created by EIT Health, and the European Investment Fund (EIF) have launched a new report on the skills gap within the European health sector. A must-read for healthcare start-ups and venture capitalists, the report, which is based on a study of 472 VC fund managers across 371 EU-headquartered VC firms, analyses the current health sector skills gaps and the investor attitudes around these. It goes on to offer practical solutions and strategies to address these gaps to help organisations to build a capable and adaptable workforce.
Talent shortage
The shortage of talent, especially in particular skillsets where new and emerging roles are leading to exponential demand, such as innovation, commercial and digital skilled positions, threatens the sustainability and growth potential of the healthcare sector. Addressing this shortage is therefore of key importance.
The WorkInHealth Foundation works to close the skills gap between health industry needs and fit-for-purpose talents to foster health innovation for all, through activities which revolve around four axes:
- Anticipate – the skills observatory gets ahead of skills needs with business intelligence
- Attract – new talent pool with pan-EU media transforming health industry image
- Train – millions of talents with tailor-made upskilling and reskilling programmes
- Match – talent and employers with an AI-powered platform and services
“If Europe is to maintain a vibrant and sustainable healthcare sector that can lead in innovation, we must rise to the challenge of recruiting and educating the best talent.” Céline Carrera, Chair, WorkinHealth Foundation.
About the European health sector skills gap report
This report, a collaboration between the European Investment Fund (EIF) and the WorkInHealth Foundation created by EIT Health, and meticulously written by the Ernst & Young (EY) team, analyses the critical skills and talent shortages within the European health sector. It draws on diverse perspectives from venture capital firms, start-ups, and industry experts, emphasising the urgency of addressing these gaps to sustain innovation and competitiveness.
The report had five overall objectives. To:
- Analyse the skills gaps within the European health sector, particularly in biotech, medtech, and digital health subsectors.
- Provide quantitative and qualitative insights into the talent shortages faced by the industry.
- Offer solutions to address these skills gaps through hiring, outsourcing, training, retaining talent, and mentoring.
- Explore the relationship between VC funds and start-ups in designing and assessing talent strategies.
- Highlight the importance of diversity and its impact on the sector.
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.”
Céline added: “Our goal is to foster innovation and sustainability in healthcare by aligning sector needs with professional development. This report is an important step towards understanding the barriers to progress in Europe’s healthcare innovation sector, as we move towards building a resilient and future-ready workforce.”
What did the report analyse?
A combined quantitative and qualitative analysis drawing on perspectives gathered from hundreds of venture capital firms, start-ups, and industry experts, the report examines the critical skills and talent shortages within the European health sector, specifically in biotech, medtech, and digital health.
It highlights the relationship between VCs and start-ups, specifically around the design and evaluation of start-up talent strategies, along with the technological advances that help cultivate a more productive and transparent investment relationship.
The report also examines diversity within European healthtech start-ups. Diversity in healthtech start-up leadership teams is coveted by VCs. Gender disparities are less prominent in healthtech compared to other industry sectors, but diversity still needs improvement and effort to maintain and grow.
The report identifies five critical soft skills gaps in European healthtech:
- Leadership and people management
- Entrepreneurial skills
- Strategic planning
- Communication skills
- Business development and networking
And three major hard skills gaps:
- Technical skills and STEM expertise
- Data analysis skills
- Familiarity with regulatory environments
To address these gaps, five key strategies were highlighted in a series of interviews and roundtables:
- Hiring – primary method for meeting immediate operational needs
- Outsourcing – main solution for temporary/non-core activities
- Training – most common approach
- Retaining talent– tied to innovative management practices and workplace flexibility to build employee loyalty
- Mentoring – recognised as a powerful tool for skill development
Key points the European health sector skills gap report revealed
- Healthtech investors perceive leadership and management as both the most crucial and the most lacking skillset in the European healthtech sector currently.
- Other critical soft skills gaps in health innovation include entrepreneurialism and strategic planning.
- The key major hard skills gaps are STEM expertise, data analytics, and regulatory expertise.
- Diversity is considered a strategic necessity within healthtech. However, gender diversity is perceived to be improving within healthtech, and better than in the tech sector at large.
- Nonetheless, nearly a quarter of VCs in the healthtech sector report no female representation at partner level in their own firms.
- A multifaceted approach is required to address the diverse skills gap challenge facing Europe’s health innovation sector.
Read the report now to learn more
This article was first published on 23 July by EIT Health
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