Industry, including pharmaceutical, medical technology, biotechnology and health IT companies, invests more in R&D than other sectors, according to Research!America’s new report. U.S. investments in medical and health research and development (R&D) grew by 13.3% over a three year period (2013 – 2015). However, medical and health R&D represents a small fraction of total spending on health. Currently, the U.S. spends less than 5 cents of every health dollar on R&D to prevent, treat, and cure disease.
In 2015, industry invested 64.7% of total R&D spending, followed by the federal government (22.6%). The majority of federal investments is channeled through the National Institutes of Health (NIH) which funds research at universities and businesses in every state, as well as research on NIH’s campuses. Investments from voluntary health associations, professional societies, foundations and state and local governments increased 8.3% from 2013 to 2014 and 16.8% from 2014 to 2015. Universities grew their investments substantially by more than 20% from 2013 to 2015 while independent research institutes increased their spending modestly by just over 3% each year.
Americans care deeply about advancing research that is supported by both the public and private sector. More than half of those surveyed (56%) say that U.S. spending on research is not enough. Read the full report here.