Institute for Economic Thinking
Working Paper Series
The discovery and development of new medicines classically involves a linear process of basic biomedical research to uncover potential targets for drug action, followed by applied, or translational, research to identify candidate products and establish their effectiveness and safety.
This Working Paper describes the public sector contribution to that process by tracing funding from the National Institutes of Health (NIH) related to published research on each of the 356 new drugs approved by the U.S. Food and Drug Administration from 2010-2019 as well as research on their 218 biological targets.
Cleary, Ekaterina Galkina; Jackson, Matthew J.; and Ledley, Fred D., 2021. Government as the First Investor in Biopharmaceutical Innovation: Evidence From New Drug Approvals 2010–2019, Institute for Economic Thinking.