R&D Tax Incentive for Industry 4.0 | Medical Case Study


Research and Development (R&D) Tax Incentive for Industry 4.0 | Medical Case Study

Technical advancements in healthcare and medical technologies are just as influenced by Industry 4.0 technologies and innovations as other industries. Major advancements in genetics, precision medicine, and diagnostics are driven, in part, by Industry 4.0.

Industry 4.0 advancements pose a challenge to existing regulations, governance systems, and traditional care models.

A few challenges already encountered by the healthcare industry include:

  • Cybersecurity
    Healthcare was the fifth most targeted industry in relation to targeted cyberattacks in 2016. The cybersecurity threat will continue to increase as cyberattacks become more advanced and healthcare change management processes are unable to quickly adapt to changes in cybersecurity. Malware can compromise the integrity of hospital systems and equipment and attacks to the infrastructure can prevent hospitals and clinics from functioning. The healthcare industry needs to be aware of its vulnerabilities and take steps to mitigate them, especially as medical equipment becomes more connected.
  • Artificial Intelligence
    Big data analytics and algorithms are invaluable tools, but the software behind it continues to be written and influenced by humans. Artificial intelligence has been proven in other industries to display human bias and prejudices. It is important that any application of artificial intelligence used in healthcare is scrubbed of any bias or prejudice to avoid negative patient outcomes.
  • Regulation
    The TGA, FDA, and other regulatory bodies are responsible for ensuring that emerging technologies are properly approved after carefully evaluating their efficacy on the intended population. Traditional approval processes and methods will need to be thoroughly examined to ensure that they are accurately evaluating the efficacy of new technologies born out of Industry 4.0.[1]

Despite concerns for how existing practices will handle new technologies and innovations, the healthcare and medical industries have already taken strides to embrace Industry 4.0 technologies. For instance, artificial intelligence is already being used to diagnose diseases, increase the speed of drug development, personalise treatment, and improve gene editing capabilities.

Related: Industry 4.0 | Why it matters & How you apply R&D

DOWNLOAD r&d industry specific paper: medical development

The following companies are just a few examples of the developmental strides being made in healthcare thanks in part to Industry 4.0 technologies.


diagnostics.ai was founded in 2009 to resolve known problems with traditional diagnostic testing methods to improve patient safety. Traditional diagnostic tests require manual input and analysis which is an expensive, extensive process that is prone to human error. pcr.ai was the first product diagnostics.ai developed. It enables automation for qPCR – the most popular infection method testing. Traditional qPCR has a documented error rate as high as 20%.

pcr.ai uses a multi-patented artificial intelligence to analyse test results to significantly improve qPCR testing accuracy. Artificial intelligence analyses patient data instantly and reliably without requiring technicians to analyse data. Pcr.ai has fewer manual errors and lower costs than traditional qPCR testing methods.[2] It has a tested accuracy of 99.9%, results are received 10% faster than traditional testing methods, it takes 90% less time for lab specialists, and is more cost effective. Misdiagnoses are significantly reduced with real-time quality control capabilities that send instant error warnings, records, and reports[3].

Clustered Regularly Interspaced Short Palindromic Repeats, or CRISPR, is the foundation for gene editing capabilities. At the CSIRO scientists are focused on gene editing in poultry to produce chickens with specific traits to improve poultry production for meats, eggs, and medicine biologics. CSIRO injected CRISPR components intravenously into 2.5 day old chicken embryos, resulting in a 1-10% efficiency of germ-line integration.

This technology has multiple applications including:

  • Developing chickens with improved resilience against diseases like Avian influenza, Avian leucosis virus subgroup J, and Merek’s Disease Virus.
  • Developing chickens that produce food safe, allergen-free eggs without ovomucoid, the most allergenic white protein.
  • Developing the next generation of vaccine eggs. CRISPR deletes a segment of the IFNAR1 gene, which is associated with viral diseases. The CRISPR plasmid was injected into eggs and the resulting chickens were raised to sexual maturity. Two generations of chickens were raised and tested to confirm the development of genome-edited (GEd) chickens.[4]

Sanofi is a global healthcare company headquartered in France that develops pharmaceutical drugs and over-the-counter medication. It has taken steps to incorporate advanced technology into its development and manufacturing processes including:

  • Blockchain
    Initially developed for digital currencies, blockchain can be used in health data analytics, medical device security, and electronic patient records to maintain data security in the digital age. It also has applications for more efficient clinical trials, reduction of counterfeit medical devices, and increased cost transparency. The World Health Organisation estimated that one in ten medical products in developing nations is counterfeit or substandard. Sanofi is evaluating ways to incorporate blockchain technologies into its products and practices to improve data and device security.[5]
  • Digital Manufacturing Plants
    Sanofi has fully embraced Industry 4.0 technologies in its manufacturing facilities. Incorporated technologies include sensors across buildings and equipment, collaborative robots, and digital twins to increase efficiencies and produce higher quality end products. Factory employees will shift their focus from manual tasks to improving control and operational throughput with real-time process performance monitoring. Digital collaboration, data analytics, and augmented reality solutions will provide access to internal and external expertise.[6]


Why Azure Group?

At Azure Group, our personal touch is the key to unlocking exceptional outcomes for our clients. To assist you in accessing the maximum possible refund under the Government Grant scheme, Azure Group has a team of experienced Grant specialists who meet with you to understand your product and services in more detail to unlock the true value of your activities.

Azure Group team has assisted many startups and SMB's in claiming Government Grants. As champions of the technology and emerging growth sector, we are proud of our success in obtaining R&D Tax Incentive (RDTI) for our clients. Beyond RDTI we uphold a reputation for being experts in the tech sector working with
innovative clients across a range of disciplines. Feel free to contact Azure Group to check your eligibility.
download r&d tax incentive | DOCUMENTATION

Have you noticed our #FridayExpertTips... here's one that relates to #R&D
"Just because you don't wear a lab coat doesn't mean your innovative business isn't doing R&D experiments that can generate big cash incentives. Talk to our team to see if you might be eligible.”

[1] https://www3.weforum.org/docs/WEF__Shaping_the_Future_of_Health_Council_Report.pdf
[2] https://www.diagnostics.ai/#pcr.ai
[3] https://pcr.ai/
[4] https://www.isaaa.org/kc/cropbiotechupdate/article/default.asp?ID=18780
[5] https://www.sanofi.com/en/science-and-innovation/blockchain-technology-the-next-digital-platform-in-healthcare
[6] https://www.sanofi.com/en/media-room/articles/2017/the-digital-plant-from-collaborative-robots-to-the-digital-plant

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Azure Group is the leading Chartered Accounting, Business Advisory and Strategic Advisory firm supporting the growth & success of fast growing entrepreneurial businesses.

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