Bring technology home and stay healthy: The role of fourth industrial revolution and technology in improving the efficacy of health care spending

This study investigates the impact of health innovation, health technology, and health care spending on the health status of G7 countries in the era of the fourth industrial revolution for the period of 1990-2017. The analysis is conducted for G7 countries with different healthcare spending levels as a share of GDP and life expectancy. We applied second-generation econometric techniques to analyses the determinants of health status in G7 countries. The results of the Pedmni (2004) and Westerlund (2007) cointegration methods suggest that the variables' health status, health investment, medical technology, and health expenditures are cointegrating. This study employs AMG, CCEMG, and MG methods to estimate the determinants of health status for G7 countries. The results show that an increase in health expenditures, medical technology, and health investment improves health status, i.e., an increase in life expectancy in G7 countries. Moreover, the estimated results robustly support the hypothesis that healthcare spending may differ according to the available health technology of G7 countries. Hence, continuous investment in health care, combined with health innovation, improves health status in terms of the ability to manage health issues.