Poland’s pharmaceutical industry has emerged as a cornerstone of the national economy, contributing over €4.5 billion annually—comparable to the country’s combined police and fire services budget. Despite accounting for a modest 1.5% of the manufacturing industry’s added value, Poland’s pharmaceutical sector is experiencing rapid growth, expanding by 32.2% from 2019 to 2022 and an additional 16% in 2023, highlighting its dynamic potential within the European market.
According to the Warsaw School of Economics’ Professor Ewelina Nojszewska, the sector’s economic impact is critical: “If domestic production were replaced with imports, Poland’s economy would face severe losses in size, employment, and tax revenue.” This underscores the importance of sustaining domestic pharmaceutical production to protect national economic stability.
Economic Contributions and Employment Impact
The sector’s contribution to Poland’s GDP stood at approximately 0.67% in 2022, equivalent to the entire drug reimbursement budget of the National Health Fund (NFZ), which supports drug costs nationwide, including high-cost hospital-only medications. “This sector’s value mirrors a substantial portion of our public health budget,” said Krzysztof Kopeć, President of the Polish Association of Pharmaceutical Producers, emphasising the industry’s role in supporting Poland’s healthcare infrastructure.
Employing approximately 81,200 people, the pharmaceutical industry represents about 1.1% of total manufacturing employment in Poland and offers wages 46% higher than the national average. “This is an attractive industry that draws skilled workers, adding high value per employee and fostering innovation,” Professor Nojszewska remarked. Nearly half of all reimbursed drugs in Poland are domestically produced, providing substantial cost efficiency for the NFZ, which spends only a third of its reimbursement budget on locally manufactured drugs.
Innovation and Reduced Trade Deficit in Pharmaceuticals
Poland’s pharmaceutical companies lead the nation in innovation, with 72.2% actively launching new products and technologies—significantly above the industrial average. “Poland’s pharmaceutical sector is exceptionally innovative, driven by in-house and collaborative R&D investments that reduce import reliance and boost competitiveness on the international stage,” the sector’s recent report notes.
Although Poland still imports a significant amount of pharmaceuticals, the industry has reduced its trade deficit from 91.1% in 2003 to 45.5% in 2022, reflecting a steady growth in exports. Germany is Poland’s largest trading partner in pharmaceuticals, reinforcing the sector’s strategic role in Poland’s trade dynamics.
Calls for Government Support to Secure Growth and Health Security
Despite the sector’s growth, industry experts warn of potential setbacks without robust government support. Dr. Agnieszka Sznyk, President of the Institute for Innovation and Responsible Development Economics, points out that while many European nations rely on pharmaceuticals as a major economic growth engine, Poland’s contribution to GDP has slightly declined from 0.74% in 2020 to 0.67%. Dr. Sznyk cautions that, without strategic actions, Poland may face reduced drug availability and weakened health security.
Countries like Germany, France, and Denmark actively support their pharmaceutical sectors, enhancing resilience and spurring growth. Experts argue that Poland would benefit from a similar approach, especially as current pharmaceutical expenditures stand at around 1.2% of GDP, on par with other OECD countries. An investment strategy that includes tax incentives, innovation grants, and public-private partnerships could strengthen domestic production, making Poland’s pharmaceutical sector more competitive in both local and international markets.
A Vision for Future Growth
The pharmaceutical sector holds substantial potential to drive economic growth and health security in Poland. With strategic government support, including favourable tax policies and increased R&D funding, the industry could expand its contributions to the economy and strengthen the nation’s healthcare infrastructure. By addressing these challenges, Poland’s pharmaceutical sector could become a key player in Europe’s healthcare ecosystem, ensuring long-term growth, resilience, and security for the Polish economy.
