[dmitriid]

R&D spending has been relatively stagnant. While industry revenue increased by 45 percent, or $241 billion from 2008 to 2014, industry spending on R&D increased just 8.5 percent in that same period, from $82 billion to $89 billion (GAO 2017). By some measures, R&D expenditures are actually falling, as more firms are outsourcing R&D to third parties. In that seven-year period, purchased R&D increased from $20.5 billion to $31.2 billion while in-house R&D fell from $61.7 to $58.2 billion (GAO 2017). Finally, the industry can only claim partial credit for recent medical breakthroughs. The federal funding provided by taxpayers contributes around 25 to 30 percent of all R&D spending per year, and a Bentley College study found that all 210 drugs approved between 2010 and 2016 were rooted, in whole or in part, on National Institute of Health (NIH)-funded research (Cleary et al. 2017).

http://rooseveltinstitute.org/wp-content/uploads/2019/02/RI_....

[aaavl2821]

That links a 404 for me but I'd want to investigate the methodologies. The r&d numbers for the industry seem low as do the revenues, I don't know what sample of companies they used

Also don't know what criteria Bentley used to determine how much NIH research contributed to new drugs

This report provides another perspective and highlights the role of industry

http://www.hbmpartners.com/media/docs/industry-reports/Analy...

[dmitriid]

Sorry, copy-pasted from anotger comment without checking the link. Here’s the proper link: http://rooseveltinstitute.org/wp-content/uploads/2019/02/RI_...

The HBM partner report seems to somewhat confirm some of the findings in the report I linked and quoted:

- 50% of drugs come from outside “Big Pharma”

- Less than 50% drugs developed in-house (mostly coming from licensing and acquisition)

Also:

- 58% approved drugs are orphan drugs.

Orphan drugs may mean government incentives, funding, public policy.