A new study commissioned by the European Federation of Pharmaceutical Industries and Associations (EFPIA) finds that investment in innovative medicines generates significant health, social, and economic benefits across Europe. Conducted by the WifOR Institute and co-authored by Frank R. Lichtenberg, the research analyzed outcomes in 29 European countries between 2014 and 2022.

The report argues that European healthcare policies often focus on short-term cost containment rather than viewing pharmaceutical innovation as a long-term investment. It highlights that Europe spends around 1% of GDP on pharmaceuticals, compared with 2% in the United States and 1.8% in China, and warns that insufficient investment could lead to slower patient access to new treatments and a weaker innovation ecosystem.

The study also notes that Europe has lost nearly a quarter of its global share of pharmaceutical R&D investment over the past two decades and has seen its share of industry-sponsored clinical trials almost halve since 2013.

Recommendations include:

1. Treating pharmaceutical innovation as an investment that generates economic and social returns, not merely a healthcare expense.

2. Improving timely and equitable patient access to innovative medicines across Europe.

3. Strengthening Europe’s life sciences sector through coordinated policies that link innovation, patient access, and competitiveness.