2020 CEO Survey: Dig Howitt, Cochlear

Telehealth solutions must be a routine part of a modern healthcare system, says Cochlear chief Dig Howitt.

What are the three enduring lessons or changes to flow from COVID-19?

How adaptable and resilient people are.

Hearing loss is under-appreciated. Many people with hearing loss subconsciously use lip reading to aid their hearing, and mask wearing has shown people how much they relied on lip reading.

Telehealth solutions must be a routine part of a modern healthcare system – these need regulatory and reimbursement support.

How would you rate the shape of the Australian economy as we head into the new year?

The Australian economy is clearly recovering. However, we should not lose the opportunity for more significant reforms that will improve our global competitiveness, lift economic growth and create high-paying jobs.

What three reforms are needed to sustainably grow the economy?

1. Taxation reform, including incentives, to encourage commercialisation of research and IP in Australia, such as a patent box. Australia is ranked in the top 10 countries for knowledge and research, but barely makes it into the top 75 for knowledge diffusion. More than 20 other countries, including 15 European Union states, offer targeted lower tax rates on revenue earned from locally created and commercialised IP. It will remain very difficult to successfully commercialise in Australia if we aren’t willing to look at similar approaches.

2. Ensure our regulatory frameworks make Australia internationally competitive, not a laggard. There are opportunities for Australia to find a competitive edge in rapidly developing areas. For example, the line between “technology companies” and “medical companies” is blurring as integrated software and connected care becomes a fundamental part of improving healthcare. A strong yet nimble regulatory framework will be critical in seizing these opportunities.

3. Government needs to lead the way in supporting local innovation. This does not mean local content requirements or protectionism. It means using the power of state and federal procurement to nurture and reward local investment by recognising and more accurately valuing the spill-over benefits this investment creates.

What are the three best growth opportunities for your company in 2021?

While 2020 has been challenging, Cochlear has continued to invest in research and development to ensure we come out of the pandemic in a stronger competitive position. Cochlear launched seven significant new products in the last 12 months, and we must now capitalise on these launches to improve the experience of our customers.

Mask wearing and isolation during the pandemic has reinforced the importance of the good hearing. We need to continue raising awareness of the importance of hearing health, so that adults with progressive hearing loss know to get their hearing tested and seek appropriate solutions if they have hearing loss.

The growth in telehealth services during the pandemic will accelerate the roll out of home-based solutions for people with hearing implants. This will help lower health care costs, improve convenience and reduce the number of face-to-face consultations to enable more people to access hearing care.

What impact will digital transformation have on your company?

Digital transformation will enable connected care solutions for people with hearing implants, which will improve health outcomes, convenience and lower healthcare costs.

How would you rate business, state and federal government performance this year?

Australia’s COVID-19 management has been good relative to most of the rest of the world.

We need to be careful of state-based parochialism: our competition for investment is other countries, not other states.