Investment in Medical Innovation Produces Immense Value for Patients, Economies
Earlier today, I participated in a panel discussion entitled “The Value of Medical Innovation to Patients, Economies and Societies”, which was a part of the Pharmaceutical Research and Manufacturing Association’s Annual Meeting. The discussion centered on one common theme – prioritizing medical innovation has far-reaching benefits for society.
In the U.S., public health problems take a toll not only on individual patients but also on society as a collective whole. The Milken Institute recently concluded that the most common chronic diseases cost the economy an estimated $1 trillion each year and that figure could rise to $6 trillion by 2050. More specifically, a study conducted by the Harvard School of Public Health and the World Economic Forum found that cancer costs the economy about $250 billion in 2010 and anticipated that expense to rise to at least $458 billion by 2030. Promoting and investing in medical innovation could significantly reduce these economic costs and improve public health outcomes.
In addition, the U.S. economy benefits tremendously from expanded medical innovations and the industries it promotes. The field, which accounts for $69 billion of U.S. economic activity, produces highly-skilled jobs that pay, on average, $85,000 a year. Also, 1.2 million jobs in the life sciences industry support 5.8 million jobs in other fields and, while manufacturing jobs in other sectors have decreased, positions in this field have remained consistent.
The U.S. is considered a global leader in medical innovation, for good reason. From 1997 to 2010, half of the world’s medical patents originated in the U.S. and an American has received the Nobel Prize for Medicine 18 times over the past 30 years. A key factor in spurring these new discoveries is our innovation economy, which rewards the enormous risks in time, people, and investment that are needed for the development of new, cutting-edge medicines. Another driver of innovation is our commitment to support research through the National Institutes of Health (NIH) and a robust university system. Additionally, the U.S. has been at the forefront in demonstrating how strong intellectual property rights protections, like those provided for new and innovative medicines, can reinforce and grow an already robust economy.
However, the U.S. cannot rest on its laurels. Intellectual property rights must continue to be a priority not only domestically but globally if we are to achieve the full potential of biomedical innovation. The U.S. should also make permanent and expand the current research and development tax credit so that innovators will have a strong economic incentive to pursue their ideas. Furthermore, funding for NIH should be doubled to ensure that the U.S. remains a global leader in medical innovation.
The U.S. has already made great strides in the field of medical innovation. Maintaining our focus and investment in this field is a critical necessity in order for patients, economies and societies the world over to reap the benefits of future discoveries.
