Broader Economic Effects of Investment in Cancer Control in Commonwealth Countries
Author(s)
Rifat Atun, MD Prof.1, Karla Hernandez-Villafuerte, PhD2, Malina Müller, BA, MA, PhD2, Dennis Alexander Ostwald, PhD Prof.3, Maike Schmitt, PhD2.
1Global Health Systems, Harvard University, Boston, MA, USA, 2Health Economics, WifOR Institute, Darmstadt, Germany, 3WifOR Institute, Darmstadt, Germany.
1Global Health Systems, Harvard University, Boston, MA, USA, 2Health Economics, WifOR Institute, Darmstadt, Germany, 3WifOR Institute, Darmstadt, Germany.
OBJECTIVES: Health investments generate economic benefits across multiple dimensions. For example, they stimulate the broader economy by driving supply and demand across sectors, through direct impacts within the health sector and spillover effects in adjacent industries. Despite their importance for economic development, these broader effects are often overlooked. We estimate the direct and spillover effects of health investment across Commonwealth countries, measuring their impact on gross value added (GVA) and employment, and assessing the return on investment (ROI) in cancer control.
METHODS: First, we define the Health Economy (HE) as a satellite sector encompassing all entities that deliver goods and services contributing to health. Using multi-region input-output (IO) data, we quantify its direct economic contribution in terms of GVA and employment. Second, we analyze intersectoral linkages through IO modelling, assessing the HE's indirect contributions across value chains. Third, we estimate induced consumption effects—resulting from income generated by the first two mechanisms—which further stimulate the economy. We estimate the ROI for cancer-related health spending in terms of GVA gains. Approximately 80% of the direct impact occurs within the HE. To assess broader effects, we apply derived multipliers, reflecting the relationship between direct and spillover impacts.
RESULTS: Value creation from cancer investments varies significantly across countries. While high-income countries report the highest absolute values (with India as a notable exception), there is substantial variation across all income groups. GVA gains as a share of GDP range from 0.003% (Mozambique) to 1.9% (Barbados). Interestingly, countries with large investments (e.g., UK, Canada, Australia) often see lower proportional value creation than smaller investors like Barbados or Togo.
CONCLUSIONS: Health investments, particularly in cancer control, drive significant economic gains through cross-sectoral impacts on growth and employment. To ensure efficient and equitable resource allocation, policymakers must recognize health as a critical driver of sustainable economic development across the Commonwealth.
METHODS: First, we define the Health Economy (HE) as a satellite sector encompassing all entities that deliver goods and services contributing to health. Using multi-region input-output (IO) data, we quantify its direct economic contribution in terms of GVA and employment. Second, we analyze intersectoral linkages through IO modelling, assessing the HE's indirect contributions across value chains. Third, we estimate induced consumption effects—resulting from income generated by the first two mechanisms—which further stimulate the economy. We estimate the ROI for cancer-related health spending in terms of GVA gains. Approximately 80% of the direct impact occurs within the HE. To assess broader effects, we apply derived multipliers, reflecting the relationship between direct and spillover impacts.
RESULTS: Value creation from cancer investments varies significantly across countries. While high-income countries report the highest absolute values (with India as a notable exception), there is substantial variation across all income groups. GVA gains as a share of GDP range from 0.003% (Mozambique) to 1.9% (Barbados). Interestingly, countries with large investments (e.g., UK, Canada, Australia) often see lower proportional value creation than smaller investors like Barbados or Togo.
CONCLUSIONS: Health investments, particularly in cancer control, drive significant economic gains through cross-sectoral impacts on growth and employment. To ensure efficient and equitable resource allocation, policymakers must recognize health as a critical driver of sustainable economic development across the Commonwealth.
Conference/Value in Health Info
2025-11, ISPOR Europe 2025, Glasgow, Scotland
Value in Health, Volume 28, Issue S2
Code
EE78
Topic
Economic Evaluation, Health Policy & Regulatory, Study Approaches
Topic Subcategory
Novel & Social Elements of Value
Disease
Oncology