European Business Summit 2013: Recognising innovation’s role in European competitiveness
21.05.13
Innovation helps to drive industry, and with it job growth, trade, and economy. These are broad terms, true, but they encompass concrete political and societal consequences that have tangible effects on citizens. This is becoming painfully clear as European economies continue to grapple with austerity and its deleterious effects on citizens – as detailed in a recent New York Times article regarding the social consequences of tough economic times, from a jump in suicide rates to increased reports of infectious disease.
“The debate must shift to focus on the role of the healthcare sector as having a potential role in driving rather than draining our economies,” Eric Cornut, Chair of the EFPIA Executive Committee and CEO of Novartis noted during the Driving Innovation session. He pointed to the industry’s positive impact on the EU trade balance, and cited a history of economic contributions: “Between 1990 and 2010, the amount research-based pharmaceutical invests in R&D in Europe increased from €7.067bn to €27bn. During the same time period, employment increased from 500,000 to 650,000, and R&D-related employment from 76,000 to 115,000. For every person directly employed, the Industry generates 3 to 4 times additional jobs.”
Such arguments leave little doubt as to the role an innovative industry can play in supporting economic strength. In the life sciences, innovation is important not only as a driver of economic growth but also as a means of improving patient well-being with the development of new and improved medicines. Cutting budgetary corners by neglecting to support innovation might have seemed like a quick fix in the past. Now we know better – or we should, at least. Cuts to programmes supporting innovation, like Horizon 2020 – which faced a potential budget cut from the €80 billion proposed by the European Commission to €69.24 billion, following a Council proposal this March – are one issue. It is also essential to foster a regulatory environment supportive of innovation.
Other economies seem quicker to recognise the value of innovation: Just this week, US President Barack Obama’s administration announced a $1 billion initiative to fund innovation in federal healthcare programs. When recently announcing the $100 million Brain research initiative – another example of the US pushing forward its efforts in innovation – President Obama noted that investments don’t always pay off and could be seen as “risks”. True, innovation carries risk, especially in the ever more-challenging field of pharmaceutical R&D. At this point, however, we can’t afford not to take these risks.
Promoting a dialogue on the benefits of innovation, as seen in the European Business Summit, is a must if we are to recognise this and embrace the big-picture thinking and action needed for a better future for Europe and its inhabitants.
