The Global Health Exhibition recently held in Riyadh centred around the theme “investing in health”, with a focus on strategic investments in healthcare. Bringing together stakeholders from multiple sectors, including local and regional government, the private sector, and non-governmental entities, the Exhibition offered a meaningful dialogue between healthcare leaders, industry visionaries and other important voices. During the Exhibition, Economist Impact convened a group of regional experts to discuss the critical role of innovation in advancing the healthcare and medicine landscape in Saudi Arabia. This blog summarises some of the key takeaways and insights discussed during this important conversation.
Takeaway 1: The definition of innovation needs to be broadened
When asked about the meaning of innovation, stakeholders uniformly expressed their understanding of it as an endeavour that inherently adds value. This wide interpretation encompasses various aspects of healthcare, including the development of new medical products, innovative solutions for existing healthcare problems, refinement of processes, and improvements to existing methodologies in manufacturing and distribution. The participants agreed that innovation must contribute tangible benefits to be deemed significant and useful. In fact, for many industries, particularly those centred around innovation, this principle is integral. In short: we must take a wide and all-encompassing view of the meaning and benefits of innovation.
Takeaway 2: Innovation in the Saudi Arabian context
All participants acknowledged the importance of innovation in Saudi Arabia, although they approached it from different vantage points. Participants agreed that Saudi Arabia has taken great strides to improve and accelerate innovation in Saudi Arabia, and that even more can be done. They also agreed that perspectives from different sectors are vital to nurturing an innovation ecosystem that will propel the country towards achieving the government’s goals for its Vision 2030 programme, which aims to drive economic, social and cultural diversification. Innovation transcends mere technology; it is a mindset that must be ingrained across stakeholders to foster coordination and an environment dedicated to progress, advancing national ambitions to lead in transformative healthcare and innovation.
- Sufana AlMashhadi, director of innovation at the Saudi National Institute of Health (SNIH), highlighted the role of the SNIH as a pivotal national catalyst for innovation, stating that the Institute's establishment represented the achievement of an important objective in and of itself.
- Ashraf Algrain, healthcare and pharma director of the Local Content and Government Procurement Authority, noted that innovation is regarded as an activity with a high multiplier effect, indicating its significant potential to drive value creation. Dr Algrain mentioned that the role of government is to create an enabling environment for innovation rather than stifle it through additional regulatory burdens.
- Nasser Alqahtani, adjunct associate professor, health policy and outcomes, Alfaisal University, said that the government’s national strategy aims to not only recognise but also embed innovative thinking and innovation in every industry.
- Rania Ashraf, director of government affairs and policy, Johnson and Johnson Innovative Medicine MENA, said that the pharmaceutical industry views innovation as a crucial engine for achieving meaningful impact in healthcare. She emphasised the need to incrementally build on advancements and invest substantially in research and development to deliver viable solutions for patients.
- Liz Clark, director, Middle East affairs, for the US Chamber of Commerce, highlighted the importance of global innovation's role in healthcare and mentioned that creating “sandboxes” where companies can test new innovations is essential.
The healthcare sector in Saudi Arabia presents a fertile ground for innovation, particularly considering ongoing reforms within the healthcare system, the maturation of regulatory frameworks and the establishment of entities like the SNIH. There is now a heightened focus on investing in local healthcare capabilities, a commitment reflected in the health-oriented components of Vision 2030.
Takeaway 3: Local healthcare needs must be balanced with global innovation trends
Saudi Arabia is actively engaging with the global landscape of innovation. A crucial focus of the discussion was finding a balance between meeting local healthcare needs and integrating into the global healthcare innovation ecosystem. Currently, healthcare and pharmaceutical models are designed to provide initial protection for innovative solutions, allowing time for return on investment. Once this protective phase ends, prices generally drop, creating value and reducing costs for the healthcare system. By leveraging this approach, Saudi Arabia can enhance its competitiveness in the realm of healthcare innovation.
Takeaway 4: Strategies for enhancing innovation in Saudi Arabia
To further bolster the innovation landscape, stakeholders discussed several key strategies:
- Accelerating regulatory processes
- Assigning greater value to research activities from a local content and economic participation perspective
- Strengthening intellectual property policies
- The role of the government bodies that can strategise and support innovation initiatives (e.g. RDIA).
The discussions at the Global Health Exhibition underscored the critical importance of innovation in driving the healthcare agenda forward in Saudi Arabia. It highlighted how Saudi Arabia has evolved its innovation environment and pointed to a way forward to enhance the innovation environment even further. The collective commitment from stakeholders, both public and private, signals a robust push towards a more innovative and capable healthcare ecosystem aligned with Saudi Arabia’s Vision 2030 ambitions and targets.
Acknowledgements:
Economist Impact would like to thank the following individuals (listed alphabetically by surname) for generously contributing their time and insights to the panel discussion, moderated by Michael Guterbock:
- Dr Ashraf Algrain, healthcare and pharmaceutical director, Local Content and Government Procurement Authority
- Dr Nasser Alqahtani, adjunct associate professor, health policy and outcomes, Alfaisal University, Riyadh
- Dr Sufana AlMashhadi, director of innovation, Saudi National Institute for Health, Riyadh
- Rania Ashraf, director of government affairs and policy, Johnson and Johnson Innovative Medicine, MENA
- Liz Clark, director, Middle East affairs, US Chamber of Commerce
