We see in a lot of APAC markets in particular a desire by national governments to have more of their medtech markets supplied from onshore.
There's a lot of drivers for this. Part of this is about climbing the industrial value manufacturing curve. Part of this is around security of supply for their citizens and populations. It's no surprise that the three largest markets in APAC by population, so China, India and Indonesia are all trying to do this and using their large domestic markets as an opportunity to bring on board significant value added manufacturing in the medtech industry.
Each of the countries in the region, the APAC region, who are pursuing localization agendas for their medtech industries are doing it in slightly different ways. China is probably the most effective and advanced so far in doing this. It's had a made in China policy around since about twenty fifteen to try and drive and support manufacturing and coming onshore with medtech as one of the key industrial sectors, as part of that. Indonesia has also gone down this route and has been looking at specific product categories to bring onshore using a variety of levers to try and support that.
And of course India is also on that road as well with its production linked incentive regime. Each of these markets is an important growth vector for global medtechs in its own particular way. Each is attractive in its own particular way. And the dynamics of bringing production onshore are important and complex.
Clearly, before pouring any concrete, you need to have business cases in place. You need to be ready to make the trade off between a variety of complex factors that are important in factoring into those business cases. We've done a lot of work with our clients around assessing both the revenue and cost elements of those investments. They're very nuanced in the sense that how policymakers have incentivized companies to be onshore, how clinicians and users respond to companies being onshore rather than offshore is all a set of nuanced decisions across the stakeholder groups.
What's pretty clear across all of the implementations of industrial policy for MedTech so far in the APAC region is that there's a certain amount of fuzziness to it. Decisions are made on a case by case basis. Supply chains and value added are very different across different types of products, so that's entirely reasonable. But it also means that it's very difficult to determine without doing quite a lot of work, working through your supply chain, your manufacturing base and working through the market dynamics, the customer dynamics to understand actually does it make sense to be pouring concrete, to be putting down new manufacturing, to be shifting supply chains and what of model it is appropriate to adopt, whether that's genuinely building your own new factory, whether that's a contract manufacturing approach or indeed whether there's a joint venture somewhere in there that makes the most sense.
