This paper discusses the challenges facing health technology
assessment (HTA) in Europe, based on an explicit analysis of the
characteristics of an “optimal” HTA system. It has three
objectives: a) to elaborate an explicit system of policy goals and
the characteristics of an optimal HTA system that
facilitates the achievement of these goals; b) to identify the
general institutional incentive barriers (government and market
failures) that prevent the attainment of an optimal HTA
system in Europe; and c) to argue that evaluation of the
implications of health technologies for equity and inequality in
health is an essential part of this optimal system and a
considerable challenge for HTA decision makers, especially as
national governments realign policy toward equity goals.