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Implantable high-density multichannel neural recording microsystems provide simultaneous recording of brain activities. Wireless transmission of the entire recorded data causes high bandwidth usage, which is not tolerable for implantable applications. As a result, a hardware-friendly compression module is required to reduce the amount of data before it is transmitted. This paper presents a novel compression approach that utilizes a spike extractor and a vector quantization (VQ)-based spike compressor. In this approach, extracted spikes a