Increasingly, patients in other countries must rely on America’s investment in health related research and development

Patients throughout the world have benefited from health related research and development. Over the past three decades hospitalization rates have dropped dramatically, life expectancy has increased and the quality of life of patients has improved because of increased knowledge about illness and disease and because of the development of new treatments and technologies. Pharmaceutical innovation has played an important role in improving health outcomes.

Despite the remarkable progress of health related R&D, many countries have removed the incentives for health care innovation through the imposition of pharmaceutical price controls.

 

Chart Source: OECD Health Data 2003

In fact spending on health research by the U.S. pharmaceutical industry and development, in 2000, significantly exceeded total private and public spending on health R&D in France, Germany, Switzerland, Canada, Australia, and Denmark combined. Similarly in 2001 per capita spending on health related R&D was four times higher in the United States than in Canada. A recent report by the European Union noted that pharmaceutical industry investment in research and development has shifted from Europe to the United States and identified pricing and reimbursement issues as probable causes for this shift.

Increasingly patients throughout the world must rely on American health related R&D to find tomorrow’s treatments and cures.