The healthcare industry currently ranks second among all industries in terms of investment into research and development, however, new research from Price Waterhouse Coopers is projecting healthcare to take the top spot in just two years.
Healthcare currently ranks third below both the aerospace and software industries based on figures from 1,000 publicly listed R&D spenders.
THE IMPACT ON HEALTHCARE
The total investment percentage equates to $782 billion spent on R&D this year which equates to more than 11.4% more than last year. The bulk of that spending is shown above, covering 76% of the total R&D spend this year.
The investment in healthcare equates to $159 billion in 2017, rising to $169.5 billion this year, whilst R&D investment rose from $161.8 billion to $175.7 billion in the computing and electronics industry. Whilst R&D spending has increased, revenues in each of these industries has also increased.
THE HEALTHCARE INVESTMENT TREND
The PwC have singled out 88 companies as "high leverage innovators" for 2017. This means they financially outperformed the rest of their industry as a whole for five years whilst spending less on R&D as a percentage of sales.
The healthcare industry has boasted 23 such countries that are investing heavily in R&D... Hologic, Mylan, Medtronic and Fresenius Medical Care. A 2017 report found that total investment in medical and health research and development in the U.S. grew by 20.6 percent from 2013 to 2016, led by industry and the federal government.
The largest healthcare are lagging behind the technology companies but have been slowly climbing over the last decade with the global trend towards healthier living.