Shots:
- Harnessing in-depth research and data-driven insights, PharmaShots unveils its definitive report on the Top 20 Countries in Healthcare Innovation 2025, a comprehensive guide to the nations setting global benchmarks in healthcare advancement
- Through a meticulous blend of quantitative and qualitative analysis, PharmaShots delved into the multifaceted dimensions of healthcare innovation, spotlighting emerging trends such as the integration of artificial intelligence (AI), machine learning (ML), and next-generation digital health platforms that are reshaping global care ecosystems
- Australia leads this year’s ranking, followed closely by Germany and Spain, reflecting the growing global momentum toward technology-driven, patient-centric healthcare transformation
Introduction
In this 2025 edition of Healthcare Innovation Reimagined, PharmaShots presents an in-depth analysis of nations that are steadfastly embracing next-generation technologies and transformative practices within their healthcare ecosystems.
Our comprehensive report, Top 20 Countries in Healthcare Innovation 2025, highlights how global leaders are reshaping healthcare delivery through bold investments, research excellence, and a forward-looking innovation mindset.
PharmaShots’ analysts meticulously examined the key drivers that define a nation’s healthcare innovation capacity. Going beyond conventional indicators, we adopted a holistic framework — integrating parameters such as R&D expenditure, GDP contribution, adaptability to emerging technologies, and readiness for digital transformation.
The report also captures the growing influence of cutting-edge enablers, from generative AI and IoT-driven systems to advanced platforms for drug discovery, which are redefining how countries nurture innovation across the healthcare continuum.
Meanwhile, the Nobel Prizes 2025 further reflect the spirit of scientific discovery shaping the global healthcare landscape.
Physiology or Medicine: Mary E. Brunkow (US), Fred Ramsdell (US), and Shimon Sakaguchi (Japan); for their discoveries concerning peripheral immune tolerance.
Chemistry: Susumu Kitagawa (Japan), Richard Robson (Australia), and Omar M. Yaghi (US); for the development of metal-organic frameworks (MOFs).
Through an extensive evaluation of each country’s healthcare infrastructure, innovation potential, and responsiveness to new-age technologies, PharmaShots presents a data-backed overview of those leading the charge in global healthcare transformation.
Quantitative Analysis
- Medical Infrastructure & Professionals:
Countries with a strong network of healthcare professionals and well-developed medical infrastructure consistently perform better in healthcare outcomes. We analyzed and ranked all 193 UN member states based on the availability of healthcare professionals and the density of medical facilities.
- Medicine Availability & Cost:
Nations with an abundant and accessible supply of essential medicines for their populations were evaluated and ranked, with a particular focus on affordability and equitable distribution.
- Research Leaders:
The number of active research leaders and contributors reflects a country’s innovation capacity. Our analysis found a direct correlation between research intensity and enhanced healthcare capabilities among leading nations.
- Health Expenditure:
Countries were ranked in descending order based on the percentage of GDP allocated to healthcare, identifying those that invest the most in advancing public health and medical innovation.
Qualitative Analysis
- Government Readiness:
Here we navigated the schemes and laws implemented by countries and federal governments to propagate the idea of affordable and universal health among the population
- New Drugs Approved:
Our research analysts sorted out countries based on the number of NDAs, and BLAs filed in a year in a country
- Clinical Trials Initiated:
Sorting countries based on the number of ongoing clinical trials helped us screen nations that embrace innovative ideas and offer ways to promote research through lucrative policies strengthening pharma companies and universities
You can reach us for Quantitative data, which was used to rank these countries at connect@pharmashots.com with a subject line “Innovative Countries”
20. Iceland
- Iceland, a Nordic island nation in Europe, earned a total score of 22 for its outstanding performance in medical infrastructure and drug approvals
- In 2024, Iceland allocated 9% of its GDP to healthcare, up from 8.7% in 2023
- Iceland received a WHO award for its leadership in promoting a well-being economy in 2024
19. Croatia
- Croatia ranks 19th among countries with the most innovative healthcare systems, earning a combined total score of 22, owing to its strong medical infrastructure and government preparedness
- In 2024, Croatia invested around 8-9% of its GDP in healthcare
- Croatia also launched a helicopter emergency medical service, a $67M EU-backed initiative designed to provide fast, high-quality emergency care for both residents and tourists
18. Belgium
- Belgium ranks 18th globally in healthcare innovation, earning a total score of 22, driven by strong drug approvals and robust healthcare spending
- In 2024, Belgium allocated about 11% of its GDP to healthcare, up from 10.8% the previous year
- On January 17, 2024, Belgium launched its Health Data Agency to enhance the use of health data for innovation and policymaking
17. Austria
- With an overall score of 22, Austria ranks 17th on the list, demonstrating a strong balance between its public and private healthcare systems
- In 2023, Austria devoted 11.8% of its GDP to healthcare to advance key areas of service delivery nationwide
- The Austrian Federal Law VUG 2024 reformed the healthcare system by amending 13 laws, aiming to strengthen private practices, expand digital services, promote health and prevention, and enhance financial sustainability
16. South Korea
- South Korea ranks 16th on the list with a total score of 23, supported by more than 2,059 active clinical studies and an impressive 99.4 average score across 15 International Health Regulations core capacity metrics
- In 2024, South Korea dedicated 8.4% of its GDP to healthcare to strengthen service delivery nationwide
- In 2024, South Korea’s Ministry of Health and Welfare (MOHW) introduced a $7.42B healthcare reform plan aimed at fair compensation, expanding the medical workforce, overhauling care delivery systems, and advancing social welfare programs such as “Birth Notice” and “Protected Childbirth”
15. France
- France ranks 15th globally in healthcare innovation with a total score of 23, supported by strong drug approvals in 2024 and an impressive average score of 88 across 15 International Health Regulations core capacity metrics
- In 2024, France spent about 11.5% of its GDP on healthcare, the highest among EU nations
- The French Parliament approved the 2024 healthcare budget, featuring measures to cap spending, tackle medicine shortages, and curb social security fraud
14. The Netherlands
- With an overall score of 24, the Netherlands ranks 14th on the list, showing strong performance across all major parameters
- In 2024, the Netherlands allocated 10% of its GDP to healthcare to strengthen overall system capabilities
- In 2024, Dutch health insurance updated including extending maternity care coverage from 10 days after delivery to up to six weeks, and adding fall-prevention measures for older adults with physical or mental health challenges to the basic coverage
13. Ireland
- Ireland, the third-largest island in Europe, earned a total score of 24 for its strong performance in medical infrastructure and healthcare affordability
- In 2024, Ireland spent 6.9% of its GDP on healthcare, up from 6.6% in 2023, marking the country’s focus on healthcare
- Minister O’Donovan, in 2024, announced a €130M investment from the National Training Fund to create six new healthcare programmes. This initiative, based on HEA recommendations, will expand Medicine, Pharmacy, and Dentistry programmes in universities to address workforce shortages
12. Finland
- With an overall score of 24, Finland ranks 12th on the list, reflecting strong government readiness and solid performance across 15 International Health Regulations core capacity metrics
- In 2024, Finland allocated 10.6% of its GDP to healthcare to strengthen key areas of service delivery nationwide
- In June 2024, Business Finland launched Health 360 Finland, an initiative aimed at promoting digital health solutions and boosting exports
11. Sweden
- Sweden ranks 11th on the list with a total score of 25, supported by strong performance across 15 International Health Regulations core capacity metrics and notable drug approvals in 2024
- In 2024, Sweden allocated 11.3% of its GDP to healthcare roughly the same as the previous year, to continue strengthening key areas of healthcare delivery
- Sweden also approved a national maternity care plan to ensure safe, accessible, and equitable maternity services across all regions in 2024
10. United Kingdom
- With a total score of 26, the United Kingdom ranks 10th on the list, driven by strong research output in 2024 and a high number of active clinical trials
- In 2024, the United Kingdom invested 11.1% of its GDP in healthcare to strengthen capabilities under the NHS
- The 2024-25 Public Health Functions Agreement for the NHS introduced expanded screening and prevention programs, including a lower starting age for bowel cancer screening and the rollout of targeted lung screening
9. Denmark
- Denmark ranks 9th on the list with an overall score of 26, performing exceptionally well across 15 International Health Regulations core capacity metrics
- In 2024, Denmark allocated 9.4% of its GDP to healthcare to further strengthen its national health system
- In 2024, the Danish government introduced a healthcare reform aimed at standardizing high-quality care across hospitals, health centre’s, and home settings, building on previous progress
8. Italy
- Italy ranks 8th among the most innovative countries with a total score of 27, excelling in medical infrastructure, healthcare professionals, and clinical trials
- In 2024, Italy allocated 8.4% of its GDP to healthcare to strengthen overall system capabilities
- Through its National Recovery and Resilience Plan (PNRR) and related EU cohesion funding, Italy is making major investments in digital infrastructure, hospital equipment upgrades, community-based care centre’s, and telemedicine
7. China
- China ranks 7th with an overall score of 27, maintaining strong performance in drug approvals and investigational clinical trials
- In 2024, China allocated about 3.4% of its GDP in healthcare to strengthen capabilities across its provinces
- In April 2024, China introduced the “Guidelines on Pricing for AI-Assisted Medical Services,” establishing pricing standards for 18 AI-driven services, including AI-aided diagnosis
6. Canada
- Canada ranks 6th among the most innovative countries with an overall score of 27, demonstrating strong performance across all key parameters
- In 2023, Canada spent 11.3% of its GDP on healthcare to enhance system capacity nationwide
- On January 15, 2024, Randy Boissonnault announced $86M in funding for 15 organizations to accelerate accreditation for internationally educated health professionals, helping reduce wait times and improve access to physicians
5. Japan
- With a total score of 30, Japan ranks second among the world’s most innovative countries, driven by outstanding performance in medical infrastructure and healthcare professionals
- In 2024, Japan allocated 10.6% of its GDP to strengthen its healthcare system
- In response to the rising number of dementia cases, the Japanese government has partnered with the technology sector to develop products that support dementia patients and their caregivers
4. United States of America
- The United States ranks 4th globally in healthcare innovation with a total score of 31, driven by strong research output and clinical trial performance
- In 2024, the United States dedicated 17.2% of its GDP to healthcare one of the highest expenditure levels worldwide
- On August 15, 2024, the Centre for Medicare & Medicaid Services (CMS) announced negotiated “maximum fair prices” for 10 high-cost drugs, with price reductions ranging from 38% to 79%, set to take effect on January 1, 2026
3. Spain
- Spain ranks 3rd on the list with a total score of 31, performing exceptionally well across nearly all key criteria
- In 2024, Spain spent 9.2% of its GDP on healthcare to strengthen service delivery nationwide
- In August 2024, a Spanish laboratory began breeding and sterilizing thousands of tiger mosquitoes to combat dengue fever and other diseases, as climate change drives the species’ spread across Europe
2. Germany
- Germany ranks 2nd among the world’s leading innovators in healthcare, with a total score of 31, showing strong performance across key indicators, particularly in active clinical trials
- In 2024, Germany allocated 12.3% of its GDP to enhance healthcare capabilities nationwide
- In 2024, Germany approved a landmark hospital reform set to take effect in 2025, introducing a reimbursement model in which 60% of hospital funding will come from fixed payments, a move aimed at reducing unnecessary procedures and promoting quality-based care, with full implementation expected by 2029
1. Australia
- Australia ranks 1st among the world’s most innovative healthcare countries, delivering above-par performance across nearly all PharmaShots evaluation parameters
- In 2024, Australia spent 10.3% of its GDP on healthcare, an increase from the previous year, to further strengthen its healthcare system
- The Government of Western Australia (WA) and the Indian state government of Kerala agreed to establish a special cell in Thiruvananthapuram to support qualified professionals seeking employment in Australia, focusing on the recruitment and training of healthcare workers
Criteria
- Drug Approvals from different regulatory bodies
- World Bank Data Group
Related Post: Top 20 Countries in Health Innovation in 2024
