ECONOMICS: 'To Your Health' Is More Than a Toast to Economists

Area of Science:

• Health economics
• Biomedical research assessment

Background:

• Traditional economic analyses use monetary returns on investment (ROI) for information technology.
• Biomedical investment evaluation often uses the "social rate of return" concept, focusing on health outcomes.

Purpose of the Study:

• To evaluate the return on investment for the nation's $45 billion annual biomedical research funding.
• To compare economic and social return metrics in different investment sectors.

Main Methods:

• Analysis of two recent reports on biomedical investment outcomes.
• Assessment of non-monetary returns, such as increased lifespan and improved quality of life.

Main Results:

• Biomedical investment demonstrates a "huge" social rate of return.
• Returns can reach over $20 for every $1 invested in health research.
• Health outcomes, including longevity and comfort, are key indicators of return.

Conclusions:

• The social rate of return in biomedicine significantly outweighs traditional financial ROI.
• Prioritizing health and well-being as returns justifies substantial investment in biomedical research.