Healthcare Investment Drives Social, Economic Growth

Innovation in healthcare has a profound impact on both society and the economy. During AMIIF’s Innovation Week, experts advocated for continued investment and prioritization of innovation in healthcare to yield indirect savings and improve multiple areas, including job creation and productivity. 

“The social and economic impact of innovation is a topic that I am incredibly passionate about, not just because it is the lifeblood of the pharmaceutical industry and more broadly of the healthcare industry, but because I believe it is one of the most powerful forces the world has ever known,” says Andrew Martin, President, Pfizer Latin America.

The COVID-19 pandemic served as a painful reminder of the fragility of life but it also enabled the healthcare industry to produce medicines and vaccines that transformed the trajectory of the outbreak, explains Martin. 

Healthcare advances have a significant impact on national economies in terms of growth and innovation, says Thomas Cueni, Director, International Federation of Pharmaceutical Manufacturers and Associations (IFPMA). Despite challenges such as COVID-19, obesity and alcoholism, the overall life expectancy across the world has increased over the past 20 years. 

Pharmaceutical innovation has dramatically changed people's lives. For example, newer drugs such as those for hepatitis C have significantly improved patient outcomes. In the past, these treatments were expensive and had many side effects, but direct-acting antivirals have transformed the landscape of treatment options. As healthcare advances, it is necessary to recognize and prioritize its impact on national economies and the potential for innovation, explains Cueni. 

Innovation has a profound societal and economic impact but to leverage its benefits, we need to place health in all policies and involve other institutions, aside from health ministries, in health investment, says Dennis Ostwald, CEO, WiFOR Institute. Investing in healthcare improves multiple areas. For example, it can lead to the creation of 2.4 million jobs.  “We need to start a new dialogue and position the health industry in a new manner,” adds Ostwald.

Innovation can also enhance productivity by promoting a healthier workforce, thereby securing their well-being in the long term. A study conducted by AMIIF and the Automotive Cluster of Guanajuato found that non-communicable illnesses reduce the value of the automotive industry by 7.1 due to absenteeism and presenteeism. “The current model needs to change, as it cannot rely on delayed treatments. Instead, early access to innovation can yield indirect savings that exceed the investment. The cost of inaction is eating us alive,” says Thompson.

However, there are some challenges that must be addressed to achieve this goal. "The main challenge in Latin America is to prioritize health on the agenda and recognize its potential impact on other spheres," explains Yaneth Giha, Director, Latin American Federation of the Pharmaceutical Industry (FIFARMA). Public spending on healthcare in the region is notably low, with Mexico having the lowest expenditure. Additionally, Latin America grapples with a significant inequality.

To face this problem, the industry needs to listen more to the patient and the industry itself, suggests Cueni. The sector needs to work together to find new ways to collaborate and foster trust, adds Giha.