Innovating for Health: Measuring the Path of Global Innovation in Healthcare Systems

<b>Background/Objectives:</b> Innovation capacity has become a strategic pillar for strengthening healthcare systems in the European Union, yet its effects vary considerably across countries with different levels of institutional development and technological readiness. This study examines how national innovation capacity, measured through the Global Innovation Index, influences health expenditure, healthy life expectancy, and childhood obesity across the EU-27. <b>Methods:</b> Using an unbalanced panel dataset for 2011-2024, we applied panel quantile regression to capture heterogeneous effects across the conditional distribution of health outcomes. Four dependent variables were analyzed: government expenditure on health, provider-level healthcare spending, healthy life expectancy at birth, and childhood obesity prevalence. GDP growth and population were included as controls. Diagnostic tests confirmed cross-sectional dependence and heteroskedasticity, supporting the choice of distributionally robust estimators. <b>Results:</b> Higher innovation capacity was positively and significantly associated with government health expenditure and provider-level spending across all quantiles (<i>p</i> < 0.001), with the strongest effects in lower-performing systems. For healthy life expectancy, innovation exhibited declining coefficients across quantiles, indicating diminishing marginal returns in more advanced systems. No stable association was observed for childhood obesity, which remained largely unaffected by national innovation capacity. <b>Conclusions:</b> Innovation contributes to structural improvements in health financing and population health, particularly in countries with lower baseline performance. In high-performing systems, its role shifts toward incremental efficiency gains. The absence of effects on childhood obesity highlights the dominance of socio-behavioral determinants. Findings are associative and call for future causal and sector-specific research.