The article doesn't really touch on a few very important points. customer autonomy for one. Almost all medical devices are purchased by insurance companies, which often will only cover the cheapest choice. It makes it much more difficult for a new company to get involved, or a new idea to gain traction.

Source: I interned at a particularly innovative medical device company a couple years ago (http://agamatrix.com/medical-devices/elite/).

Two missing points from this. First, many of these companies do believe they're creating something with a great experience. Second, the time it takes to approve medical devices, depending on their purpose, is not attractive to most design or engineering talent. There is brain drain, sadly.