In the Lisbon Agenda, the European Union’s member States have committed themselves to invest in becoming the most competitive economy in the world. In this paper we review the evidence on whether investment in health should be part of this process. Concentrating on microeconomic studies, we show how better health can increase productivity and labour supply. In addition, there is an indirect positive effect through the investment that healthy people make their own education. Governments pursuing sustainable economic growth – broadly defined – should include the health of their population along with education and physical infrastructure in a balanced investment strategy.