Earlier this month, the OECD released an important report on how to drive competitiveness and growth (F4GC), noting that we are at a time where economic prospects are under pressure due to short-term uncertainty and longer-term productivity challenges.

While the report rightly emphasizes key drivers such as regulation, skills, and resource allocation, health is addressed only indirectly—largely embedded within human capital, workforce participation, and ageing dynamics, rather than recognized as a standalone driver of economic growth.

As a result, health remains a “hidden variable” throughout the analysis, present through proxies and missing one significant strategic driver—how economic strength must be underpinned by strong healthcare systems and healthy populations.

Health innovation is a determinant of economic growth

There is growing evidence that access to medical innovation not only transforms how we prevent, treat, and cure disease—but can also support people to lead healthier, longer, and more productive lives.

Looking at OECD’s own data, across 25 OECD countries, the employment rate of adults aged 50 to 64 drops from 72% to 63% for individuals who have one chronic condition, and 40% for those with two. The direct cost of healthcare expenses alongside lost productivity from the five largest groups of non-communicable diseases (NCDs) is estimated to amount to $47 trillion from 2010 and 2030.

Such is the impact, McKinsey estimates that, without action, the average person in 2050 will spend about 42 days per year in poor health due to NCDs.

There is growing evidence that access to medical innovation not only transforms how we prevent, treat, and cure disease—but can also support people to lead healthier, longer, and more productive lives.

Investing in prevention and health innovations could not only save 60 million lives but add $12.5 trillion to global GDP by 2050.  What’s more, every €1 spent on preventive healthcare generates a €14 return to the health and social care economy.  In the decade between 2007 and 2017, medicines are estimated to have added two million healthy years to patients’ lives in the EU—these health gains led to increases in productivity totaling €27 billion.

Supporting a healthy workforce and healthy ageing

The OECD’s F4GC report rightly highlights ageing populations as a key challenge for future productivity. Alongside an approach that looks to maximize workforce mobility and skills, access and availability to medical innovation can not only support healthier working populations but also sustain healthcare systems as they respond to these demographic pressures and enable people to age well.

So, while much in the OECD’s prescription is welcome, this approach to unlocking growth must not neglect the importance of investing in strong healthcare systems. They are drivers of growth, alongside supporting healthier and more productive populations.  If we are to be successful, we need all governments to engage with the pharmaceutical sector as a strategic partner, invest in healthcare, and bring access to medical innovation both now and in the future.

Author

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  Danielle Rollman Chair, Value & Access Working Group, IFPMA and Vice President, Global Access Policy, Innovative Medicine, Johnson & Johnson