“Key to unlocking future scientific progress is prioritizing innovative medicines and vaccines as strategic investments that drive economic productivity, growth, and security”
Key to unlocking future scientific pro- gress is prioritising innovative medicines and vaccines as strategic investments that drive economic productivity, growth, and security. Without sustained focus and com- mitment, this long-held competitive edge risks slipping away. THE CASE FOR PRIORITISING PHARMA- CEUTICAL INNOVATION The economic importance of pharmaceu- tical innovation is undeniable. In 2022, the sector contributed $2.3 trillion to global GDP, including direct and spillover effects. Nearly half originated from G7 countries. 2 That output generates spillovers globally: for every $1 of GDP directly generated by the industry, an additional $2.04 in value is created along the global supply chain. 3 The industry directly employed 7.8 million people in 2022, 4 more than one million of them in R&D roles – the kind of high-skill, high-wage positions that anchor national competitiveness for generations to come. These contributions carry even greater weight as G7 economies confront deepen- ing demographic pressures. People aged 55–69 already account for 20–30% of the workforce across most OECD countries, and chronic illnesses significantly hamper 5 participation; among those aged 50–64, participation falls from 72% for healthy individuals to just 40% for those managing two conditions. Innovative medicines and vaccines are a key pillar of workforce resilience, help- ing to keep experienced workers active, productive, and engaged for longer. Strate- gic, evidence-based policies that increase access to medicines and vaccines play a central role in sustaining economic growth and managing demographic change. The appropriate, early use of innova- tive medicines and vaccines also plays an important role in building resilience into
healthcare systems. They reduce unnec- essary hospitalisations, slow disease progression, and limit long-term care costs – easing pressure on systems that govern- ments cannot afford to overstretch. Every €1 invested in prevention generates up to €14 in health and social returns 6 and adult immunisation programmes deliver benefits of up to 19 times their initial investment. 7 These benefits create the fiscal headroom governments need to sustain broader national priorities. Looking ahead, the pharmaceutical pipe- line signals exceptional opportunity. More than 12,700 medicines are currently in development, with over 350-400 expected to launch by 2030 8 – advances that will reduce the scale, cost, and frequency of future health challenges. This impact extends beyond healthcare. Health shocks function as economic security shocks: the probability of a pandemic in the next 25 years stands at 47–57%, 9 whilst chronic diseases already account for roughly 75% of all global deaths and will cost over $30 tril- lion in economic losses. 10 The implication is clear: countries that lead in pharmaceu- tical innovation will be in better shape to protect workforce capacity, stabilise public finances, and maintain the resilience that economic security demands. A STRATEGIC MOMENT FOR THE G7 France’s 2026 G7 presidency presents a timely opportunity to affirm innovative medicines and vaccines as drivers of eco- nomic security. G7 nations bring a unique combination of historic leadership, world-class scientific infrastructure, and deep policy experience to shape the next era of pharmaceutical innovation. As global competition for innovation inten- sifies, G7 members have both the legacy and strategic imperative to remain at the forefront.
// DAVID REDDY David Reddy is the Direc- tor General of IFPMA, representing the innovative pharmaceutical industry glob- ally and in official relations with the United Nations. With over three decades in global health and pharmaceuticals, he brings experience spanning R&D, product commerciali- sation and access, policy and advocacy, partnerships, and organisational leadership across private and nonprofit sectors.
1. OECD (2023) Health at a Glance Report. This compares to electronics (23.5%), aerospace (14.7%), and manufacturing (8.4%), 2. IFPMA and WifOR Institute (2024) The Economic Impact of the Global Pharmaceutical Industry Report, 3. IFPMA and WifOR Institute (2024) The Economic Impact of the Global Pharmaceutical Industry Report , 4. IFPMA and WifOR Institute (2024) The Economic Impact of the Global Pharmaceutical Industry Report, 5. OECD (2026) Building healthy, productive workforces for our 21st century , 6. The European House, Ambrosetti (2024) The value of preven- tion for economic growth and the sustainability of healthcare, social care and welfare systems , 7. OHE (2024) The socio-economic value of adult immunisation programmes , 8. IQVIA (2026) Global Medicine Use Trends 2026, 9. Center for Global Development (2021) What’s Next? Predicting The Frequency and Scale of Future Pandemics 10. World Bank; WHO Global Health Estimates
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