Recognizing the importance of generating and disseminating innovation for the social and economic development of capitalist countries and the systemic, institutional, and historical nature of this process, this paper emphasizes the need to deal with innovation in the health sector within a framework linking economic, institutional, and policy dynamics. Analysis of the main health goods industries (manufacturers of pharmaceuticals, vaccines, and diagnostics) shows that in the developed countries there is a certain compatibility between the health system and the innovation systems in terms of requirements, and that the state is an essential player in this articulation. In Brazil, however, there is a marked disconnection between the health and innovation systems. The few initiatives aimed at this link have enhanced the competitiveness of national agents and have been essential elements in national health policy. Based on this analysis, it is argued that beyond its social dimension, health policy is a strategic means to consolidate a dynamic innovation system, with direct effects on national development.
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