However, the main factor that drives both economic development and health expenditure is technological progress because, for example, new technologies offer firms, including health services providers, an opportunity to earn monopoly profits [26, 52, 65].
The following in the dynamic norm is growth rate of the share of regional and local budgets in total expenditures on technological innovation.
We found that the main driver of health expenditure is technological progress.
The main driver for increasing health expenditure is technological progress, which accounts for four percent per year and accelerated faster after each decade in the study period.
The ratio of expenditure on technological innovation to investments in fixed assets have to grow with lower speed because of need of the advancing increase in researches and development in comparison with the technological innovations created on their basis.
Continued sustainable price reductions, however, require strategies focused in further technological innovation, minimization of capital expenditures, and optimization of supply chain flows.
As our indicator for technological opportunities, we use aggregate expenditures for research and development by business in the European Union (27 countries), scaled by aggregate GDP.
While much of the quantitative evidence indeed substantiated the cost-increasing effect of new technology overall, the broader spectrum of evidence (eg, cost-effectiveness studies, descriptive analyses) suggests that the relationship between technological advances and health care expenditure is not straightforward or static.
"But nobody comes close to Fidelity and its expenditures on its proprietary technological system," he added.
