How does the federal government research funding compare to the private sector?
A7. The federal government and the private sector both make important contributions to medical research, but there are some differences in focus. The federal government is more likely to spend its research dollars on severe illnesses, vaccines, basic research and innovative therapies. The private sector is more likely to invest in “me too” drugs that compete with similar drugs in a therapeutic class, drugs for non essential medicines, like baldness remedies, chronic illnesses, and marketing related research. Of course, these are relative differences, and one observes R&D investments from both the public and the private sector in many important areas, such as cancer and AIDS research.
Related Questions
- Why should individual donors and the private sector fund university and hospital research when there is government funding such as the NIH?
- Why is federal funding so important? Aren private companies allowed to do embryonic stem cell research?
- Did the federal government in 2001 forbid funding any embryonic stem cell research?
