Healthcare innovations could boost UK economy by £278 billion, new report finds

Strategic investment in health innovation could:

• Lead to a £246bn growth in UK productivity by reducing ill-health, about 9.6% of GDP
• Lead to an additional £32bn of foreign investment in life sciences in the UK
• Have a direct impact on the NHS workforce freeing up 233 million hours of additional NHS, work £8.55bn

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.”

Jon Siddall, Chief Executive Officer of Health Innovation South West, said: “The economic value of improving health through innovation – a staggering £278 billion – is a national opportunity for us all to seize.

The potential of economic prosperity is critical for our rural and coastal communities, where levels of deprivation are high and there is significant variation in equity of health.

The prevalence of health conditions in coastal populations was highlighted by Chief Medical Officer Professor Chris Whitty in his Annual Report 2021, Health in Coastal Communities. For example, we know in Torbay, a region on the South Devon coast, that rates of cardiovascular disease, respiratory disease and diabetes are either similar to or significantly higher than the England average. Outcomes for several mental health conditions are also significantly worse in Torbay than on average across England.

 Our work with partners and innovators at the centre of the South West innovation ecosystem is putting innovation into practice to tackle these challenges and drive economic growth. From rapid diagnostics that bring care to the community to digital tools that have the potential to bring care to the homes of people living with illness, the South West is a real-world demonstration of how innovation can transform the health and wellbeing of people living and working in rural and coastal places.” 

Richard Stubbs, Chair of the Health Innovation Network, said: “This report sets out for the first time the size of the prize to 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.”

The report shows that health innovations, many of which are already up and running, could 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/