Who are the largest investors in U.S. medical and health R&D?
One contentious issue in the global narrative on drug pricing and affordability is the source of R&D. Where exactly are research and development dollars coming from?
Based on a 2019 report from @ResearchAmerica, the private sector has and continues to invest more than any other stakeholder in the United States, accounting for 67% of total spending in 2018, followed by the federal government at 22%. Total U.S. medical and health R&D spending was $194.2 billion. Of that, industry invested $129.5 billion, with 80% accounted for by the biopharmaceutical sector.
Federal agencies invested a total of $43 billion, with the National Institutes of Health (NIH) accounting for nearly $32.4 billion or 82.4% of federal spending.
The private sector outspent the NIH by four-folds. However, NIH funding has contributed to published research associated with every one of the 210 new drugs approved by the US FDA from 2010–2016.
This report underscores the breath and significance of public and private collaboration in the development of new medicines.