Health innovations 'could boost economy by £278 billion'

Innovations in healthcare could boost the UK’s growth by bringing in around £246 billion every year, a new report has revealed.

Defining the Size of the Health Innovation Prize, by Frontier Economics, places the economic value of reducing ill-health through innovation at an equivalent to 9.6 per cent of the entire British economy.

The report also finds that health innovation could help attract a further £32billion in foreign direct investment (FDI) by improving population health, fostering investment, and strengthening the life sciences sector, bringing the total economic opportunity to £278billion.

Commissioned by the Health Innovation Network, the study shows that health innovations, many of which are already up and running, will have a huge impact on the NHS’s workforce as they develop further – freeing up 233 million hours, in itself worth £8.55 billion.

The report was hailed by ministers and health professionals as a landmark study pointing the way forward for a vastly more productive and efficient 21st century NHS.

Health and Social Care Secretary, Rt Hon Wes Streeting MP, said: “We often talk about the challenges associated with healthcare in this country, but this report shows there are lots of opportunities too if we harness the massive potential at our fingertips.

“The NHS is uniquely placed to take advantage of innovation, and this landmark study reveals the prize on offer – potential benefits worth £246 billion annually and the ability to free up 233 million hours for our NHS workforce, proving that health innovation isn't just good for patients, it's vital for our economy and the taxpayer.

“By focusing on key conditions like mental health and cardiovascular disease, and embracing AI, telemedicine and genomic research, we can improve patient outcomes while creating high-skilled jobs and attracting global investment.

“This isn't just about fixing the NHS - it's about positioning the UK as a world leader in health innovation through our Plan for Change and ensuring our healthcare system drives prosperity rather than holding it back. The findings in this report will help inform our mission to build a health service that delivers for patients and contributes to a stronger economy."

Richard Stubbs, Chair of the Health Innovation Network, said: “This report sets out for the first time the size of the prize to be gained from implementing health innovations at scale. At a time of economic challenges and uncertainty, investing in cost-effective, evidence-based health innovations can help stop the cycle of poor health and unemployment by breaking down the health-related barriers to work. 

“By improving access to early intervention, personalised care, and timely support, we can help more people manage their conditions and enable them to return to work – improving their quality of life while also boosting the economy."

Dr Phil Jennings, Chief Executive of Health Innovation North West Coast, said: "Too often we focus solely on health-related treatment costs. This report reveals the significant role health plays in getting people into work, returning to work, or enhancing productivity: it's essential reading."

The report shows that health innovations, many of which are already up and running, will have a huge impact on the NHS’s workforce as they develop further – freeing up 233 million hours, in itself worth £8.55 billion.

It focuses in particular on tackling four of the biggest conditions impacting the NHS: mental health, musculoskeletal problems, respiratory issues and cardiovascular health.

While the report finds that as the population’s health is expected to worsen over time, the productivity impact will increase from reducing ill-health. These four conditions have the biggest potential for making significant productivity gains.

Recent innovations already being rolled out include measures to prevent cancer, detect asthma and improve blood pressure. New innovations can generate further value, the report says.

Transformative new techniques emerging now include greater use of AI and automation, telemedicine and remote monitoring, genomic research, wearable devices and diagnostic imaging.

The report says the Health Innovation Network can act as ‘the catalyst to release the prize’, boosting both healthcare and the overall economy on an enormous scale.

Read the report: https://thehealthinnovationnetwork.co.uk/news/healthcare-innovations-could-boost-uk-economy-by-278-billion/