Forming an Alliance of Frenemies
The “White Dot Initiative” united MedTech leaders, providers, recyclers, and experts in a cross-industry approach. This unique effort, led by INDEED Innovation, transformed complexity and competition into cooperative action, charting a roadmap for an economically viable circular MedTech industry.
The Problem: Germany’s MedTech Waste
The MedTech industry in Germany generates approximately 4.8 million tonnes of waste annually, with only a fraction being recycled.
Incineration, the conventional way of disposing this waste, costs money and wastes valuable materials. Meanwhile, hospitals face rising waste disposal costs, and medical device companies in Germany are confronting stricter EU regulations and unreliable supply chains.
Key challenges:
- Fragmented value chains and diverse stakeholder ambitions
- Lack of economic feasibility – individual efforts failed to reach break-even due to insufficient material volumes
- Legal, technical, and structural hurdles, especially around safe handling, sterilization, and data protection
- A lack of shared vision and methodology, with competitors traditionally operating in silos
- No single organization possessing the resources, scale, or expertise to shift the sector alone while maintaining competitiveness, compliance, and profitability
The Approach: Reshaping the MedTech Ecosystem
We established the Round Table Alliance, bringing together 14 key MedTech ecosystem leaders and showcasing a comprehensive industry cross-section. This included major manufacturers such as Johnson & Johnson, Olympus, and Philips, the drivers of production and innovation. By including clinics, we gained direct insights into the needs and challenges faced by healthcare providers in Germany. Furthermore, the alliance incorporated recyclers and reverse logistics experts, essential for sustainable medical device end-of-life management. This diverse collaboration enabled us to map the industry’s complexities in detail and identify opportunities for circular economy solutions.
From Opportunities to Building a Roadmap
Our structured method guided a MedTech alliance through opportunity identification, feasibility research, concept development, scenario modeling, and phased roadmap design, fostering collaboration to drive impactful circular economy solutions.
Identifying Key Opportunities
In order to sustainably establish circular economy principles in the MedTech sector, the current regulations such as LAGA18 are currently the biggest obstacle. National authorities and European policymakers are called upon to create the regulatory conditions for a more circular economy in the MedTech sector.
Daniel Unger, Johnson & Johnson Medtech
We facilitated discussions using targeted questions to pinpoint the most promising areas for action. The group prioritized “Recycling clinical waste to prevent incineration” based on a comprehensive analysis of stakeholder needs and potential impact.
- Which approach offers the highest return among multiple options?
- Where should we focus to take immediate action?
Researching Feasibility
We then conducted a thorough assessment of the viability of the prioritized opportunity. Partnering with Resourcify, we analyzed existing projects, waste streams, technologies, and regulations to answer. This research highlighted central challenges like disinfection, logistics, and the need for collaboration across different manufacturers.
- What technically feasible recycling solutions exist?
- What are the potential business models and their economic viability?
- What are the key steps and priorities for implementation?
Developing Circular Business Concepts
Based on our research and identified challenges, we developed strategic concepts focused on:
- System Mapping: to understand the current MedTech ecosystem and its material flows.
- Circular Opportunities: to locate specific points for intervention and value recovery.
- Viable Business Model: to create a framework that benefits all stakeholders involved.
Scenario Modeling
To evaluate potential solutions, we defined a “Joint Reference Product.” This product is an archetypical representation of a 1kg clinical waste, which is composite of materials, electronics, and packaging. Defining this archetype allowed stakeholders to analyze the financial, operational, and environmental consequences of three different value recovery models.
Designing a Phased Roadmap
Finally, we developed a step-by-step transformation plan, prioritizing:
- Establishing “The White Dot” system, a digitalized recycling platform, as a branded infrastructure for efficient waste management.
- Initiating with high-value waste, focusing on single-use electronic devices.
- Scaling to other valuable waste types such as steel tools for greater impact.
- Exploring advanced models refurbishment and multi-use device strategies.
At its core, our method encouraged trust and openness among collaborators, transforming competitors into co-innovators.
The Outcome: High-Impact Circular Business
- Scaled Cross-Industry Alliance: The “White Dot” initiative, a growing collaboration now part of Zuke Green, a German MedTech Industry Association.
- Actionable Roadmap for Transformation: Clear path to industry-wide circularity delivering significant emission cuts, cost neutrality, and new revenue.
- Innovative Operational Models: Feasible concepts for digital tracking, secure waste handling, and AI-powered sorting.
- Catalyst for Regulatory Change: Supporting steps for regulatory adaptation through knowledge sharing with legislators (kicked off in March 2025)
- Blueprint for Co-Innovation: Replicable model shifting competitor mindsets towards sustainable innovation.
- Cost Savings & Emission Reduction Potential: The concept can reduce incineration costs and substantial Scope 3 CO₂ savings.
- Broad Scalability Potential: Standardized system ready for adoption across 1,900+ clinics in Germany.
Download the White Paper
This feasibility case study examines how the MedTech industry can transition to a Circular Economy through collaborative innovation.
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FAQ
Why is the MedTech industry shifting toward circularity?
MedTech is facing rising disposal costs, strict EU supply chain laws, and growing pressure to reduce carbon emissions. A circular model helps reduce incineration, reclaim valuable materials, and make operations more sustainable and cost-effective.
How does AI enable circularity in the White Dot system?
AI plays a critical role by enabling:
– Computer vision and machine learning for automated sorting of medical waste
– RFID and blockchain tracking for traceability across the value chain
– Predictive analytics to optimize disassembly, refurbishing, and resource recovery
These technologies allow safe, scalable, and regulatory-compliant circular operations across healthcare networks.
Why is circular economy important for MedTech?
The MedTech industry generates 4.8 million tonnes of waste annually in Germany alone, with only a small fraction recycled. A circular approach enables:
– Lower Scope 3 emissions
– Cost reduction for hospitals (e.g., avoiding incineration)
– Enhanced supply chain resilience
– Compliance with EU Circular Economy and MDR regulations
Why Choose Indeed Innovation for Circular MedTech?
– Proven Experience with clients like Olympus, Eppendorf, Philips, and Dräger
– Strong competence in Circular Experience Thinking
– Feasibility-Proven Frameworks – from pilot to scale
– Deep expertise in EU regulation, clinical process flows, and material science
Indeed Innovation consults, builds systems, launches cross-manufacturer alliances, and delivers long-term transformation strategies that align with sustainability goals and financial performance.
