Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
Promoting Medical Tourism ● 111Table 5.3 Indicators of research and development (technology creation)Patents2002R&Dexpenditureas a % of GDP1997–2002Researchersin R&D permillion people1990–2003Quality ofscientificresearchinstituteCollaborationsbetweenindustry anduniversityArgentina n.a. 0.4 715 4.0 3.0Chile n.a. 0.5 419 3.9 3.1Costa Rica 1 0.2 370 4.3 3.4Cuba 0 0.5 538 n.a. n.a.India n.a. n.a. n.a. 5.1 3.3Jordan n.a. n.a. 1,977 3.7 2.8Malaysia n.a. 0.7 294 5.0 4.7Philippines 0 n.a. n.a. 3.3 2.7S. Africa 0 0.7 192 4.7 4.2Thailand n.a. 0.2 289 4.0 3.6Note : Patents refer to the number of patents given per million people; last two columns refer to perceptions1–7 (reaction to questions: scientific research institutions in your country are [1 nonexistent, 7 thebest in their fields internationally; in its R&D activity, business collaboration with local universities is[1 minimal or nonexistent, 7 = intensive and ongoing])Source : United Nations Development Programme, Human Development Report 2005, (New York: UNDP,2005), table 13; and World Economic Forum, Global Competitiveness Report 2005–06, (New York: PalgraveMacmillan, 2006), tables 3.05, and 3.07.(the latter is licensed for development and marketing by CancerVaxCorporation in California 63 ). For the former, the World Intellectual PropertyOrganization (WIPO) awarded Cuba the Gold Medal in 2002. (Incidentally,this is not the only award that Cuba’s medical researchers have received: forits research in ophthalmology, the Cienfuegos International Retinosis Centerin Havana received the Ibero-American Quality Award for Excellence,Science chose the research of the Pedro Kouri Institute of Tropical Medicinein Havana as one of the twelve worldwide to recognize in its 125th anniversaryissue. 64 ) Altogether, more than 500 different medical products aremanufactured locally by the Cuban pharmaceutical industry. 65Cuba is so advanced in the biotech and pharmaceutical sectors that Indiais trying to engage it in a technology transfer, especially in the area of vaccines.That does not mean that India is lagging behind in overall researchand development. To the contrary, India is one of the world’s leaders inbiotechnology research. Its government has promoted the biotech andpharma industries, and as a result, India has the world’s fourth largestpharmaceutical industry (producing mostly generic drugs). 66 One of itsfirms, Bharat Biotech, produces a hepatitis B vaccine using Bharat’s proprietarytechnology (that can supply the vaccine at low cost to developing
112 ● Medical Tourism in Developing Countriescountries). 67 Also, India is engaged in stem-cell research, even boasting aGenome Valley just outside of Hyderabad where research entities are concentrated.Indian research and development in biotech and pharma industriesis geared at satisfying domestic needs and thereby reducing the needto import foreign products and techniques. Drugs are imported on a needbasis. If there is a generic version, the doctor decides whether to prescribethe Indian generic (similarly, in Malaysia some 65 percent of drugs areimported and physicians decide whether to use those or locally produceddrugs [that tend to be general such as painkillers and antibiotics] 68 ). Evenfor physical capital, there is an emphasis on domestic production. NeeleshRajadhyaksha, medical superintendent of Bombay Hospital, 69 said theIndian medical tourism industry imports hard-core medical equipment ona need basis from GE, Philips, and Siemens.After satisfying domestic needs in medical or biotech fields, India seeksto promote its exports. The country’s advanced position with respect toresearch and development is especially evident in its abilities to export tocountries such as Mexico, Costa Rica, Brazil, Chile, and Peru.Chile has also become a regional center for health research and technology,conducted primarily in universities and research centers. The governmentprovides incentives through the National Science and TechnologyCouncil. 70 Chile has also been successful in developing cross-border telehealthinitiatives: it is involved with the Andean network of EpidemiologicalSurveillance with Bolivia, Colombia, Ecuador, Peru, and Venezuela throughthe use of information and communication technologies. 71Advantage IV: Developed Physical InfrastructureThe Thai government wants to create a modern service-oriented economyand has much competition from India and China. In order to achieve itsgoal, it is investing heavily in infrastructure. For five years, starting in 2005,the government plans to invest $41 billion, or 26 percent of gross domesticproduct, in infrastructure such as electricity, transportation, housing, irrigation,health, and education. 72 In Jordan, the government pledged a massivetourism infrastructure plan and will implement tax incentives for foreignand local investors in that sector. 73The Thai and Jordanian authorities are intent on developing their infrastructurebecause they know, as do many development economists, that thecapital required for economic growth is not just equipment and humancapital, but also includes public infrastructure. 74 Such infrastructure isdefined as the underlying amount of physical and financial capital embodiedin roads, railways, waterways, airways, and other forms of transportation
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Promot<strong>in</strong>g <strong>Medical</strong> <strong>Tourism</strong> ● 111Table 5.3 Indicators of research and development (technology creation)Patents2002R&Dexpenditureas a % of GDP1997–2002Researchers<strong>in</strong> R&D permillion people1990–2003Quality ofscientificresearch<strong>in</strong>stituteCollaborationsbetween<strong>in</strong>dustry anduniversityArgent<strong>in</strong>a n.a. 0.4 715 4.0 3.0Chile n.a. 0.5 419 3.9 3.1Costa Rica 1 0.2 370 4.3 3.4Cuba 0 0.5 538 n.a. n.a.India n.a. n.a. n.a. 5.1 3.3Jordan n.a. n.a. 1,977 3.7 2.8Malaysia n.a. 0.7 294 5.0 4.7Philipp<strong>in</strong>es 0 n.a. n.a. 3.3 2.7S. Africa 0 0.7 192 4.7 4.2Thailand n.a. 0.2 289 4.0 3.6Note : Patents refer to the number of patents given per million people; last two columns refer to perceptions1–7 (reaction to questions: scientific research <strong>in</strong>stitutions <strong>in</strong> your country are [1 nonexistent, 7 thebest <strong>in</strong> their fields <strong>in</strong>ternationally; <strong>in</strong> its R&D activity, bus<strong>in</strong>ess collaboration with local universities is[1 m<strong>in</strong>imal or nonexistent, 7 = <strong>in</strong>tensive and ongo<strong>in</strong>g])Source : United Nations Development Programme, Human Development Report 2005, (New York: UNDP,2005), table 13; and World Economic Forum, Global Competitiveness Report 2005–06, (New York: PalgraveMacmillan, 2006), tables 3.05, and 3.07.(the latter is licensed for development and market<strong>in</strong>g by CancerVaxCorporation <strong>in</strong> California 63 ). For the former, the World Intellectual PropertyOrganization (WIPO) awarded Cuba the Gold Medal <strong>in</strong> 2002. (Incidentally,this is not the only award that Cuba’s medical researchers have received: forits research <strong>in</strong> ophthalmology, the Cienfuegos International Ret<strong>in</strong>osis Center<strong>in</strong> Havana received the Ibero-American Quality Award for Excellence,Science chose the research of the Pedro Kouri Institute of Tropical Medic<strong>in</strong>e<strong>in</strong> Havana as one of the twelve worldwide to recognize <strong>in</strong> its 125th anniversaryissue. 64 ) Altogether, more than 500 different medical products aremanufactured locally by the Cuban pharmaceutical <strong>in</strong>dustry. 65Cuba is so advanced <strong>in</strong> the biotech and pharmaceutical sectors that Indiais try<strong>in</strong>g to engage it <strong>in</strong> a technology transfer, especially <strong>in</strong> the area of vacc<strong>in</strong>es.That does not mean that India is lagg<strong>in</strong>g beh<strong>in</strong>d <strong>in</strong> overall researchand development. To the contrary, India is one of the world’s leaders <strong>in</strong>biotechnology research. Its government has promoted the biotech andpharma <strong>in</strong>dustries, and as a result, India has the world’s fourth largestpharmaceutical <strong>in</strong>dustry (produc<strong>in</strong>g mostly generic drugs). 66 One of itsfirms, Bharat Biotech, produces a hepatitis B vacc<strong>in</strong>e us<strong>in</strong>g Bharat’s proprietarytechnology (that can supply the vacc<strong>in</strong>e at low cost to develop<strong>in</strong>g