Podcast Summary: How Life Sciences Investment Drives Economic Growth

Podcast: GZERO World with Ian Bremmer
Episode: How life sciences investment drives economic growth
Date: October 14, 2025
Host: Dan Riskin (GZERO Media)
Guests:

• Patrick Horber, President of Novartis International
• David Gluckman, Vice Chairman of Investment Banking and Global Head of Healthcare, Lazard

Episode Overview

This episode examines how investment in the life sciences sector not only advances medicine but also drives broader economic growth—creating jobs, supporting national competitiveness, and spurring innovation. Host Dan Riskin leads a data-rich exploration of public and private investment returns, the global competition for life science innovation, and the policy frameworks that foster thriving bioscience hubs. The conversation features the dual perspectives of Patrick Horber (industry leader, Novartis) and David Gluckman (investment banker, Lazard).

Key Discussion Points & Insights

1. The Ripple Effect of Life Sciences Investment

• Massive economic returns: Government funding in the U.S. from 2007–2022 generated more than double in added economic activity ($46B public investment → $104B economic activity) and 600,000 U.S. jobs. (01:00)
• Beyond health benefits: Focus for this episode is on the financial/fiscal argument for government investment in the life sciences, distinct from the typical focus on public health or national security. (01:46)

2. Why Life Sciences Attracts Investors

• Fundamental to societal progress:

  “Life science is fundamental to our society. It works not only to improve the human condition, but really transcend many limitations—aging, health span, mortality and so forth.”
  — David Gluckman (03:01)

• Huge market and returns:
  • 2023: U.S. bioscience sector generated $3.2T in output, directly employed 2.3M people, another 8M in related jobs
  • 17% compound annual return (1990–2022)—even during volatile times (03:15)
  • Aging population (“global longevity economy”) now over $45T, more than a third of global GDP (03:37)
• Rapid pace of innovation: Top investment priorities include antibodies, data analytics, AI/ML, precision medicine, and RNA technologies. (04:42)

3. Secrets of Global Innovation Hubs

• Integrated ecosystems: Boston, California (San Francisco, San Diego), Basel, Cambridge, Shanghai are standout hubs due to:
  • Research universities
  • Strong infrastructure
  • Deep capital markets
  • Talent density (05:49)
• The “flywheel” effect:

  “Success creates more talent, which creates more success, which brings yet more talent.”
  — David Gluckman (06:28)

• Regional differences:
  • UK/Europe: Strong on science/startups but more fragmented, smaller markets (07:20)
  • China: Explosive growth—R&D funding from <$100M → $15B in a decade, responsible for 25% of global drug development. Government “cluster model” is powering rapid innovation. (08:15)
• Rising geopolitical stakes: Life sciences increasingly central to economic & technological competition. (08:45)

4. Novartis: Private Sector’s Role & Impact

• Global reach:
  • Medicines provided to 296M patients (2024)
  • 78,000 employees, 2,000 clinical trials, ~$10B R&D investment (09:16)
• Pioneer in innovation: Firsts in CML treatment, investments in radio ligand therapy, siRNA platforms targeting unmet medical needs.

5. Optimal Public-Private Relationships

• Multiplier effects:

  “Every dollar which gets invested in the life science industry generates $3 in GDP globally. Every job...generates 5 in the global economy.”
  — Patrick Horber (11:25)

• Policy friction: 20% of U.S.-launched medicines never reach European markets; those that do often arrive after years of regulatory delay.
• Advocacy for recognition: Calls for governments to appreciate and support the value of life sciences. (12:59)

6. Choosing Where to Invest

• Three pillars for Novartis investment:
  1. Fast, predictable regulatory frameworks
  2. Strong intellectual property protection
  3. Sustainable funding/pricing and reimbursement

  “We really want to invest where innovation is not just approved, it should be embraced and recognized.”
  — Patrick Horber (16:46)

7. What Makes an Innovation Ecosystem Thrive

• Government’s critical enabling role:
  • Financial: Public investment (e.g., NIH as first investor bearing risk) unlocks private investment.
  • Policy: Predictable regulatory environment, strong IP, streamlined approvals, pricing incentives. (17:32–21:19)
  • U.S.: Programs like Breakthrough Therapy and Orphan Drug Act have sped up innovation and access. (19:55)
  • China: Strategic industry initiatives, integrated clusters, rising competitiveness.

8. Dedicating GDP to Life Sciences: National Impact

• Unlocks growth:

  “With sustained public investment you would see a surge in R&D, talent, infrastructure—a multiplier effect.”
  — Patrick Horber (21:37)

• National security parallel:

  “You only need to look back to the COVID-19 pandemic…healthcare systems and supply chains are critical national assets.”
  — David Gluckman (23:37)

• Spillover effects: Sustained government investment in life sciences not only supports health, but fosters innovation across sectors (defense, tech, manufacturing).

9. Call to Action & Closing Reflections

• Urgency for investment:

  “Governments cannot afford to treat life science as a cost anymore. They have to see it as a priority...not just about health, it’s about national security, economic growth, strategic autonomy…The time is now to invest. They have to do it now or never.”
  — Patrick Horber (26:00)

• Ecosystem thinking:

  “I’ve always found that the most compelling innovation happens at the intersection of things that may seem quite disparate…dynamism…spills over to other technologies and creates an even broader flywheel across the economy.”
  — David Gluckman (27:38)

Notable Quotes & Memorable Moments

• On the transformative power of life sciences investment:
  “In the US the bioscience sector generated over 3.2 trillion in economic output in 2023...over a roughly 30-year period...a 17% compound annual return.” —David Gluckman (03:10)
• On missed opportunities caused by regulation:
  “20% of the medicines...in the United States never made it to the European market because they never get submitted or approved.” —Patrick Horber (12:14)
• On the policy multiplier:
  “NIH funding...delivers $2.56 for every dollar invested.” —David Gluckman (18:13)
• On urgency:
  “The time is now to invest. They have to do it, now or never.” —Patrick Horber (26:55)

Timestamps for Key Segments

• Opening and framing: (00:14–04:24)
• Global science innovation centers and investment climate: (05:27–08:55)
• Novartis’ impact and private sector perspective: (09:16–11:25)
• Policy, public-private interaction, regulatory hurdles: (11:25–16:45)
• Investment decision factors: (15:22–16:46)
• The role of governments and financial models: (17:32–21:19)
• Debate: GDP targets for life science investment: (21:19–25:42)
• Final appeals and closing thoughts: (26:00–29:23)

Final Thoughts

This episode positions life sciences not just as a health issue but as a driver of economic dynamism, national resilience, and technological leadership. Both guests advocate for a systemic, proactive approach by governments to secure the competitive and strategic advantages that come with robust life sciences investment—emphasizing that the “time to act is now.”