The Covid-19 pandemic reminded the world to what extent health and economic stability are linked. However, beyond the immediate impacts of the pandemic, the growing burden on non -transmitted diseases (MNT) – such as cancer, diabetes and cardiovascular conditions – represents a growing crisis in 2025. This already important burden continues to increase with live populations and economic changes in life. Investing in health innovation is essential to ensure lasting companies and economies.
Despite the eventful start of the year – marked by the resignation of Prime Minister Justin Trudeau and the imminent threat of prices that could disrupt key industries – Canada now has a unique opportunity to trace a new course. With a change of leadership to come this year and the 2025 group of the seven group (G7), Canada can enter this moment to reaffirm its commitment To promote “economies that benefit everyone”, one of its 2025 G7 goals. Canada should use its G7 presidency, which it has held since January 1, to reaffirm its commitment to promote these economies by placing the progress of health innovation in the agenda of the organization. Ottawa should prioritize the communication of the importance of health innovation for economic growth and societal well-being, expanding access to early projections for MNTs and the creation of sustainable financing and financing models to invest in health technologies.
Why health innovation is important
Health care play a central role in the social contract, promoting confidence, cohesion and resilience by ensuring that individuals can lead a healthier and more productive life. But progress in health innovation and improving health results can also create immense economic value. Improving global health could stimulate the global economy until Twelve billion dollars by 2040According to a 2020 MCKINSEY report. More granular data highlights the socio-economic costs of the failure of the fight against diseases such as cancer. A recent study estimated the world economy cost Cancers from 2020 to 2050 to 25.2 billions of dollars (in US dollars 2017), essentially an annual tax of 0.55% on global gross domestic product.
The economic case of health innovation becomes even clearer when considering the economic benefits of optimal development research and spending for treatments and vaccines for known diseases. A 2024 study By the National Institutes of Health have shown that the economic benefits of spending on vaccines and COVVI-19 treatments varied from $ 2,000 to 60 billion, with rate of return from 12% to 23%. In addition, innovative treatments for multiple sclerosis, for example, should make significant improvements in the next decade, which can reduce relapse rates and the progression of slow disease, leading to improved productivity.
Health Innovation also provides exceptional investment returns. According to a McKinsey studyEach dollar invested in health innovation reports two to four dollars in economic benefits. Beyond immediate savings, healthier populations are more active in the labor market, have lower absenteeism (for patients and their caregivers) and require less health systems, which all improves overall productivity. In addition, the fight against early and effectively MNT ensures that aging populations remain economically active for longer, compensating for the demographic opposite that many G7 economies are currently faced.
Prioritize health innovation in the G7 budget budgets
G7 countries must make health priority innovation a budgetary priority. The growing prevalence of chronic diseases and associated economic costs require immediate action. For example, the integration of early detection and processing technologies can considerably reduce the progression of the disease, which ultimately reduces long -term health care costs. Mature savings like Japan and those of the European Union, where aging populations exacerbate the challenges of health care, must proactively allocate budgets to sustainable health innovation. The organization of economic cooperation and development underlined This health is not only a cost– It is an engine of wealth. Public-private partnerships are a powerful mechanism to ensure that health expenses are effective and impactful. For example, public-private partnerships allow collaboration between governments and private companies to share costs, accelerate the deployment of advanced technologies such as diagnostics based on artificial intelligence (AI) and improve infrastructure management, ensuring that resources are directed where they generate the highest value.
Countries like Finland offer a plan to succeed. Finland investments in digital health technologies have not only favored public confidence, but also built economic resilience. Based on such examples, G7 countries should make health innovation a cornerstone of their budgetary strategies, meeting the immediate needs of health care while preparing for future economic and demographic challenges.
Canada’s opportunity to conduct health innovation
Canada leading the G7 this year, it has a unique opportunity to place health innovation at the forefront of the world agenda. While the Presidency of Canada will face competing priorities – geopolitical conflicts, inflation and economic instability – health should remain a central objective because of its fundamental role in the next generation of these challenges. Robust health systems strengthen resilience against crises, support economic stability and strengthen societal trust.
Canada can lead by encouraging the G7 to adopt four key priorities:
- Recognize the economic and societal value of health innovation. Health Innovation offers advantages far beyond clinical results. Canada should argue for greater recognition of how investments in health care stimulate economic growth, improve the participation of the workforce and improve societal well-being. This can be done by pushing G7 objectives on reducing the economic burden of specific diseases.
- Adopt early screening and diagnosis. Prioritization of early detection of diseases can considerably reduce the costs of long -term health care while improving the results of patients. Canada can put pressure for collaboration efforts through the G7 to normalize and extend access to early screening technologies.
- Promote sustainable financing and financing models. Canada should defend innovative financing solutions that mix public and private financing. These models can ensure that health systems are resilient, adaptable and capable of treating costs without compromising accessibility or quality of care.
- Underline the role of digital health technologies in conducting efficiency and innovation. Interoperable data systems, for example, allow better coordination of care, previous diagnostics and more personalized processing plans – all essential for the increasing charge management of MNTs.
Building a health -focused economy
By adopting a full health program, the G7 nations can unlock immense economic and social awards. Health improvements Only global employment growth could increase by 0.3% by 2040, which would help reduce labor shortages and improve economic resilience. These advantages extend beyond high income countries; Investments in health innovation can strengthen global partnerships, reduce health inequalities and promote shared growth.
Innovation in health is not just a choice of policy; It is an economic imperative. Under the direction of Canada, the G7 can establish a bold program that recognizes the broader value of health, prioritizes innovation and builds resilient savings. By acting now, the G7 nations can obtain a healthier and more prosperous future for their citizens and the world.
Carl Meacham is a consultant at Adrienne Arsht Latin America Center. He was Deputy Vice-President of Phrma and a member of the US Senate Committee on foreign relations.
This article was written as part of the partnership of the Atlantic Council with Roche.
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