That arm is the KUKA Light Weight Robot (LWR) Arm, which was developed by the German Aerospace Agency (DLR) and called the DLR III LWR [1]. It can move _MUCH_ faster than in the video. It likely moves that slow for the safety of the human and itself -- it costs ~$150k and the high-speed movements create a lot of momentum.

Incidentally, this was the same arm used in the "knife-stabbing experiments." [2]

[1] http://www.hizook.com/blog/2009/08/26/kuka-light-weight-robo...

[2] http://spectrum.ieee.org/automaton/robotics/medical-robots/0...