Characterizing the public sector contribution to drug discovery and development: the role of government as a first investor

Authors

Ekaterina Galkina Cleary
Matthew Jackson
Andrew Acevedo
Fred D. Ledley

Document Type

Article

Publication Date

3-2020

Abstract

This research is focused on examining the role of the public sector as an early investor in biopharmaceutical discovery and development. In the United States, the National Institutes of Health (NIH) is the primary source of funding for basic biomedical research designed to elucidate fundamental mechanisms of biology, health, and disease. This research is expected to establish the scientific foundation for the discovery and development of new biopharmaceutical products. This interim report reviews the linear model of innovation underlying these expectations, and evidence for the effectiveness of this pathway. We also describe new data demonstrating that every new drug approved by the Food and Drug Administration (FDA) for the decade from 2010-2019 was associated with basic science funded by the NIH.

Recommended Citation

Cleary, E.G., Jackson, M., Acevedo, A., Ledley, F.D. (2020, March). Characterizing the public sector contribution to drug discovery and development: the role of government as a first investor (Institute for New Economic Thinking Working Paper). Institute for New Economic Thinking. https://www.ineteconomics.org/research/research-papers/tax-payer-investment-leads-new-drug-discoveries