WEBVTT 1 00:00:00.000 --> 00:00:02.680 Ben, Raoul, thank you so much for joining me today. 2 00:00:02.680 --> 00:00:06.600 So a new BCG report, ‘Innovation for Impact: Unlocking the Potential 3 00:00:06.600 --> 00:00:08.720 of the UK's Healthcare Ecosystem’, 4 00:00:08.720 --> 00:00:12.400 looks at how the UK can use its world-leading research and development 5 00:00:12.600 --> 00:00:16.120 to improve outcomes for patients and deliver stronger economic growth. 6 00:00:16.760 --> 00:00:19.600 Raoul, could you please give us a bit of a sense of some of the findings 7 00:00:19.600 --> 00:00:21.600 from the report? Sure. Thanks, Francesca. 8 00:00:21.600 --> 00:00:22.360 So we know the UK 9 00:00:22.360 --> 00:00:25.360 has some of the best universities and research institutes in the world, 10 00:00:25.360 --> 00:00:27.480 but when it comes to translating this R&D excellence 11 00:00:27.480 --> 00:00:29.920 into improved patient outcomes or economic growth, 12 00:00:29.920 --> 00:00:32.880 the UK doesn't deliver as effectively as some of our peers. 13 00:00:32.880 --> 00:00:37.680 So currently, the healthcare sector is expected to add around £102 billion 14 00:00:37.920 --> 00:00:42.040 to the UK economy by 2030 and account for around 3% of the global market. 15 00:00:42.440 --> 00:00:45.360 But right now, we think we're leaving huge value on the table. 16 00:00:45.360 --> 00:00:49.440 Our research shows that if the UK was able to translate its R&D excellence 17 00:00:49.440 --> 00:00:53.080 into commercial and clinical success, on par with countries like Denmark 18 00:00:53.080 --> 00:00:58.480 and the US, we'd be able to add a further £78 billion to the UK economy by 2030. 19 00:00:58.640 --> 00:01:03.120 So that's a 76% uplift, a huge uplift and has a meaningful impact 20 00:01:03.120 --> 00:01:05.840 on productivity, growth and investment across the economy, 21 00:01:05.840 --> 00:01:08.320 as well as improving outcomes for patients. Great. 22 00:01:08.320 --> 00:01:10.200 So the opportunity is really clear. 23 00:01:10.200 --> 00:01:13.800 But the report also highlights some of the obstacles the sector's facing. 24 00:01:13.960 --> 00:01:16.160 Can you give us a bit of a sense of what some of these are, Ben? 25 00:01:16.160 --> 00:01:17.720 Sure. We've identified 26 00:01:17.720 --> 00:01:21.680 four key systemic barriers for healthcare innovation in the UK. 27 00:01:22.040 --> 00:01:26.200 Firstly, around our workforce. There are limitations on both capability 28 00:01:26.480 --> 00:01:27.520 and capacity. 29 00:01:27.520 --> 00:01:30.840 For example, there's been a 40% drop in our non-consultant 30 00:01:30.840 --> 00:01:33.840 clinical academic workforce over the last ten years. 31 00:01:34.320 --> 00:01:36.280 Secondly, data. 32 00:01:36.280 --> 00:01:37.040 So there's an issue 33 00:01:37.040 --> 00:01:41.280 both around access to data and the inconsistency of the data we have 34 00:01:41.280 --> 00:01:42.520 within the system at the moment, 35 00:01:42.520 --> 00:01:45.960 which is the lifeblood for many of the innovations that we need. 36 00:01:46.680 --> 00:01:50.320 Thirdly, there are issues around collaborations and partnerships 37 00:01:50.320 --> 00:01:51.320 within the UK. 38 00:01:51.320 --> 00:01:55.200 We’re going to need to work both across public and private sector to work this together. 39 00:01:55.720 --> 00:01:59.640 It's very difficult for them to actually find access points and then to scale. 40 00:02:00.160 --> 00:02:02.040 And then fourthly and probably most importantly, 41 00:02:02.040 --> 00:02:06.640 when we look at the regulatory environment, it actually inhibits growth. 42 00:02:08.000 --> 00:02:11.520 By finding it hard to get into the market, but then particularly for that to be then taken to scale. 43 00:02:11.520 --> 00:02:15.000 And Raoul, given that we know healthcare 44 00:02:15.000 --> 00:02:18.720 innovation already plays a really important role in the UK economy, 45 00:02:19.120 --> 00:02:22.520 what is the potential economic impact from addressing some of these barriers? 46 00:02:23.320 --> 00:02:26.160 Well, this is something we tried to get to the heart of with our new research. 47 00:02:26.160 --> 00:02:28.440 And as Ben says, it could be transformational. 48 00:02:28.440 --> 00:02:31.240 So we looked at four high-burden conditions: 49 00:02:31.240 --> 00:02:35.520 cardiometabolic diseases, cancer, mental health and musculoskeletal disorders. 50 00:02:35.520 --> 00:02:39.400 And currently together these cost the NHS around £70 billion every year. 51 00:02:40.040 --> 00:02:42.480 And they also impact productivity across the workforce, 52 00:02:42.480 --> 00:02:45.960 with people being out of work sick and having reduced capacity to work. 53 00:02:46.680 --> 00:02:49.320 Right now there are innovations that can make a difference 54 00:02:49.320 --> 00:02:51.640 in these four areas, but are not being scaled and rolled 55 00:02:51.640 --> 00:02:55.080 out across the UK for a number of reasons that Ben already mentioned. 56 00:02:55.400 --> 00:02:58.960 And we think if you can start to address this and scale some of these innovations, 57 00:02:58.960 --> 00:02:59.960 you can unlock around 58 00:02:59.960 --> 00:03:03.640 £17 billion in additional productivity annually for the UK economy. 59 00:03:03.840 --> 00:03:07.680 You could also save the NHS around £3 billion per year in treatment costs. 60 00:03:07.920 --> 00:03:09.040 So it could really make 61 00:03:09.040 --> 00:03:12.960 a transformational impact in terms of improving patient outcomes, 62 00:03:12.960 --> 00:03:17.080 improving economic growth and obviously helping the NHS save money. 63 00:03:17.520 --> 00:03:18.960 So a huge opportunity. 64 00:03:18.960 --> 00:03:23.000 And the report also gives a vision for how we can deliver some of this change. 65 00:03:23.080 --> 00:03:26.240 Ben, what’s needed for the UK to really deliver on its potential? 66 00:03:26.320 --> 00:03:29.280 Well as we look globally at what some of the best practices are 67 00:03:29.280 --> 00:03:31.160 and then applied them into the UK, 68 00:03:31.160 --> 00:03:32.840 we have identified three areas 69 00:03:32.840 --> 00:03:35.840 that are of particular interest which could transform things. 70 00:03:36.200 --> 00:03:40.080 Firstly, we can establish the UK as an innovation platform 71 00:03:40.280 --> 00:03:41.440 through a clear strategy 72 00:03:41.440 --> 00:03:45.680 that gives people clear pathways on how to access and deliver, 73 00:03:46.080 --> 00:03:49.920 I think, and build our workforce and sort out our data issues. 74 00:03:50.600 --> 00:03:54.840 Secondly, there is a real opportunity to build collaborations 75 00:03:54.840 --> 00:03:58.320 and industry partnerships in a different way through focused 76 00:03:58.320 --> 00:04:02.840 innovation hubs, where they are supported and enabled to deliver. 77 00:04:03.360 --> 00:04:06.600 And thirdly, around incentivising all of that 78 00:04:06.880 --> 00:04:10.000 through tax credits, through clear IP frameworks 79 00:04:10.280 --> 00:04:14.040 and through accelerated regulatory pathways. If we could do that, 80 00:04:14.360 --> 00:04:19.200 we could really deliver value for both our patients and our NHS. 81 00:04:19.800 --> 00:04:22.480 Ben, Raoul, thank you so much for joining me today. 82 00:04:22.480 --> 00:04:25.160 If you'd like to read the full report, it's available on bcg.com.