DINEO SEGA: Healthcare innovation can boost productivity and jobs

It is a link not often made by economists when contemplating the economic state of a country, but improving the health and wellbeing of its population can have a significantly positive impact on productivity, employment and economic growth. 

Studies by leading health economists show significant health and economic gains attributable to innovation in medical technologies. Studies by Frank Lichtenberg, David Cutler and Mark McClellan show that continued investment in research & development (R&D) in the health sector has improved human lives and increased life expectancy in developing and developed countries.

To truly reap the benefits of a healthy population, government and the private sector should go beyond financing existing healthcare systems and embrace innovation, R&D and the plethora of technological and scientific advancements that have defined the past few years. 

Cardiovascular disease affects Africa disproportionately, research shows. More than half of the deaths from cardiovascular disease are “premature”, affecting people aged 30-70, the most productive age groups, resulting in serious social and economic consequences at the household, community and national levels. 

Considering one specific form of heart disease shows the real impact of innovation at work. Atrial fibrillation affects about 37.5-million people worldwide, with this number set to increase by up to 70% by 2030. 

The innovation taking place in the treatment of atrial fibrillation is underprofiled in SA, where accredited surgeons, (just more than 20 in the country) are trained and use the latest technologies provided by MedTech and others to treat the condition and prevent stroke through innovative, early detection methods.

A truly global healthcare response is an all-of-society response that invests in people, education, R&D, medicines and devices that equip patients and clinicians with a variety of tools to tackle healthcare concerns. 

Research & development

In 2022 expenditure on R&D in SA totalled just 0.85% of GDP, compared with figures above 3% for countries such as Belgium, Sweden, Austria and Germany. 

Investing to increase the capacity of the innovation ecosystem in Africa is critical to strengthening the R&D pipeline for entrenched and emerging global health challenges, which is evident in the significant increase in technology-led medical start-ups in SA. Data from the SA Venture Capital & Private Equity Association indicates that in 2022 healthcare was the second-largest sector for venture capital deals, accounting for more than 18% of investments and up more than 50% from 2021. 

Beyond venture capital funding, the private sector has invested billions into innovative technology and interventions to improve healthcare outcomes. The launch in 2022 of the Satellite Centre for Global Health Discovery at the University of Cape Town is an example of this. The establishment of centres such as these helps create a global scientific network that will help stimulate local innovation and support researchers to drive and advance discovery R&D. 

This centre is working to drive new solutions to address antimicrobial resistance, one of the top ten global health threats identified by the World Health Organisation, meaning that breakthroughs made here will have global application. 

Education 

At the end of 2023, President Cyril Ramaphosa held the inaugural Presidential Science, Technology & Innovation Plenary. Speaking at the event, he outlined how according to the 2022 Global Innovation Index SA fared well in market sophistication, knowledge and technology outputs and creative outputs, but had mixed results regarding expenditure on education and R&D, and access to information technology. 

In the same year higher education minister Blade Nzimande highlighted the need for, and commitment towards, an increased focus on tertiary education that is geared towards health innovation, particularly in the areas of medical devices, diagnostic innovation, active pharmaceutical ingredient technologies and supporting healthcare needs through R&D. 

The greatest impact in these areas will come from a collective approach, between government, the private sector and civil society, such as government’s Technology Acquisition & Deployment Fund, which supports the procurement of locally developed technologies, or Johnson & Johnson’s investment into a programme aimed at attracting more female students into Stem studies by awarding scholarships to female students at the University of KwaZulu-Natal.

The company has also funded African students’ attendance at the MSc Global Mental Health Course at King’s College in London and established a medical education fund to provide bursary funding to midwifery and neonatal studies at the University of Stellenbosch. 

These commitments are aimed at ensuring that students across a range of healthcare and Stem sectors can access educational opportunities that drive the kind of innovation that has the power to change SA’s healthcare systems and outcomes. 

Technological innovation 

Technological innovation is driving some of the world’s biggest innovations, not just in healthcare but across a range of industries. Artificial intelligence dominated discussion in 2023 and we have been actively harnessing this technology in several ways from helping to develop medicines, to early detection of disease. Large healthcare multinationals have committed to building a world in which complex diseases are prevented and cured and in which innovation is built around patient needs. 

But even simpler technological interventions are also having a significant impact on the healthcare space. Take the Vula Mobile app, a cost-effective solution that has been making specialised healthcare accessible to remote communities in SA. It connects frontline workers such as nurses in rural healthcare facilities with medical specialists, delivering more effective communication and treatment. 

The app developers were named one of the top four most innovative entrepreneurs in healthcare by the UN Development Programme (UNDP) and is a shining example of the impact that emerges when talent, innovation, funding and support combine. 

Creating an enabling environment in which innovation and R&D are not just buzzwords but are truly allowed to thrive, ensures that the clinicians and healthcare workers who are at the centre of healthcare delivery have access to the best treatments for everyone. 

• Sega is director for government affairs & policy at Johnson & Johnson SA.