The COVID-19 pandemic highlighted the strategic significance of healthcare and life sciences across the European Union, placing the sector alongside defence and energy in terms of national security. In response, many governments introduced stricter FDI controls to protect critical health infrastructure and supply chains, while also launching new initiatives to attract capital into this vital area. These measures reflect a dual imperative: safeguarding national interests while supporting investment-driven innovation in medical technologies and research.

FDI approaches to healthcare and life sciences differ significantly among EU member states, shaped by unique policy priorities and regulatory frameworks. In France, for example, high-level government summits and advisory councils have been established to actively court international investment, demonstrating a proactive stance toward the sector. These national strategies, however, must navigate the broader EU regulatory environment and align with overarching principles of market openness, competition, and strategic autonomy.

The central challenge for policymakers lies in achieving the right balance between protecting strategic assets and maintaining an investment-friendly climate. This requires an understanding of investor needs, as well as clear and adaptive regulatory mechanisms. While foreign investment screening is crucial for economic security, excessive barriers risk undermining the capital flow essential for high-cost, research-intensive sectors like healthcare and life sciences. To enable long-term innovation and resilience, FDI controls must be carefully calibrated to protect public interests while facilitating constructive engagement with international investors.