Skip to main content
Official Logo of Columbia Business School
Academics
  • Visit Academics
  • Degree Programs
  • Admissions
  • Tuition & Financial Aid
  • Campus Life
  • Career Management
Faculty & Research
  • Visit Faculty & Research
  • Academic Divisions
  • Search the Directory
  • Research
  • Faculty Resources
  • Teaching Excellence
Executive Education
  • Visit Executive Education
  • For Organizations
  • For Individuals
  • Program Finder
  • Online Programs
  • Certificates
About Us
  • Visit About Us
  • CBS Directory
  • Events Calendar
  • Leadership
  • Our History
  • The CBS Experience
  • Newsroom
Alumni
  • Visit Alumni
  • Update Your Information
  • Lifetime Network
  • Alumni Benefits
  • Alumni Career Management
  • Women's Circle
  • Alumni Clubs
Insights
  • Visit Insights
  • Digital Future
  • Climate
  • Business & Society
  • Entrepreneurship
  • 21st Century Finance
  • Magazine
Insights
  • Digital Future
  • Climate
  • Business & Society
  • Entrepreneurship
  • 21st Century Finance
  • Magazine
  • More 

The Value of a Vaccine

A COVID-19 vaccine would be worth trillions.

Published
March 23, 2020
Publication
Business & Society
Jump to main content
Article Author(s)

Stephen Chupaska

Affiliated Author
Lab workers transfer liquid into a test tube
Category
Thought Leadership
Topic(s)
Healthcare, Leadership

0%

As the COVID-19 pandemic has thrown daily life, hospitals, and the financial markets into turmoil, researchers around the globe have begun the race to develop a vaccine.

Pharmaceutical industry expert Professor Frank Lichtenberg estimates that the value of a vaccine could reach into the trillions of dollars and says that the need for companies to innovate now is crucial for saving lives.

“Not only would a vaccine reduce mortality and hospitalizations, but it would have an incredible impact on economic activity and GDP,” says Lichtenberg, the Courtney C. Brown Professor of Business in the Economics Division. “The value of a vaccine would be incredible—much larger than anything I think we've ever seen.”

Lichtenberg has authored several papers on the research and development of new drugs, studying the effect they had on society between 1981 and 2013. To do so, he estimated how many years of life would have been lost if the medicines had not been developed and launched throughout the world.

“If you die at age 50 as opposed to 80, you've lost 30 years of life,” he says.

In one study of 27 countries, Lichtenberg estimated that, if no new drugs had been launched after 1981, the number of years of life lost would have been more than twice as high as it actually was. In a second study of 15 countries, he estimated that, in the absence of those drugs, total days of hospital care in 2015 would have been 163 percent higher than it actually was.

With those figures in mind, he says that to find the value of a vaccine, one must consider the magnitude of the COVID-19 crisis and think about it in terms of four burdens—mortality, Leadership & Strategy & Strategy, disability, and the economy.

Lichtenberg has not yet seen any estimates of years of life lost from coronavirus.

“There are some scary figures out there in terms of mortality,” he says. “At first, it was thought that this is primarily affecting older people, but now there's evidence that younger people are also becoming very ill from it.”

As several experts have pointed out, COVID-19 could be overwhelming for hospitals and result in life-long disabilities for individuals.

“This could reduce your quality of life,” Lichtenberg says.

What is currently unknown is the ultimate impact of those burdens on future economic activity, which has been curtailed severely by social isolation.

“That's why, if and when a vaccine is developed, which most people expect to happen in the next year and a half,” Lichtenberg says, “the value to society will be in reducing these other burdens, and allowing the economy to get back to normal. Or at least a new normal.”

Lichtenberg says it's important that any new vaccine be fairly priced, but also that it is financially attractive for companies to invest heavily in research.

“Given how valuable this would be to the world, providing financial incentives to industry is important,” Lichtenberg says. “We need to develop a safe and effective vaccine as quickly as possible.”

You Might Like

Business and Society, Diversity, Ethics and Leadership, Globalization, Leadership, Leadership and Strategy, Management, Social Impact
Date
February 04, 2025
A protestor holding a placard
Business and Society, Diversity, Ethics and Leadership, Globalization, Leadership, Leadership and Strategy, Management, Social Impact

When Should Companies Take a Stand? The Risks and Rewards of Corporate Activism

New CBS research explores the factors driving inconsistent corporate stances on global sociopolitical issues and the risks that come with them.
  • Read more about When Should Companies Take a Stand? The Risks and Rewards of Corporate Activism about When Should Companies Take a Stand? The Risks and Rewards of Corporate Activism
Business and Society, Leadership
Type
Business & Society
Date
January 23, 2025
Business and Society, Leadership

The Wall and the Bridge with Glenn Hubbard

Taking Adam Smith’s logic to Youngstown, Ohio, as a case study in economic disruption, Hubbard discusses the benefits of an open economy and creating bridges to support people in turbulent times so that they remain engaged and prepared to participate in, and reap the rewards of, a new economic landscape.
  • Read more about The Wall and the Bridge with Glenn Hubbard about The Wall and the Bridge with Glenn Hubbard
Elections, Marketing, Politics
Type
Business & Society
Date
October 10, 2024
Elections, Marketing, Politics

The Rise of Meddle Ads in Political Campaigns—and Why They’re Backfiring

Watch Professor Mohamed Hussein describe this new approach to political campaigning and explain why it might not always have the desired impact.
  • Read more about The Rise of Meddle Ads in Political Campaigns—and Why They’re Backfiring about The Rise of Meddle Ads in Political Campaigns—and Why They’re Backfiring
Business and Society, Labor, Leadership
Date
September 05, 2024
CBS Photo Image
Business and Society, Labor, Leadership

The Power of New Hires: How Fresh Talent Shapes Company Culture

A company's culture can significantly impact its financial performance, employee retention, and the overall well-being of its employees, according to new research from Professor Wei Cai.
  • Read more about The Power of New Hires: How Fresh Talent Shapes Company Culture about The Power of New Hires: How Fresh Talent Shapes Company Culture
Save Article

Download PDF

More to Explore
Share
  • Share on Facebook
  • Share on Threads
  • Share on LinkedIn

External CSS

Homepage Breadcrumb Block

Official Logo of Columbia Business School

Columbia University in the City of New York
665 West 130th Street, New York, NY 10027
Tel. 212-854-1100

Maps and Directions
    • Centers & Programs
    • Current Students
    • Corporate
    • Directory
    • Support Us
    • Recruiters & Partners
    • Faculty & Staff
    • Newsroom
    • Careers
    • Contact Us
    • Accessibility
    • Privacy & Policy Statements
Back to Top Upward arrow
TOP

© Columbia University

  • X
  • Instagram
  • Facebook
  • YouTube
  • LinkedIn