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The respective roles of the public and private sectors in pharmaceutical innovation
Date:12/17/2011

.. The researchers identified public-sector patents to be ones assigned to a government agency, which generally resulted from research conducted inside that agency, and all of those with government interest statements. Most derived from academic laboratories that had received government funding, generally through extramural research grants. The recipients of federal research grants are required to acknowledge government funding in their patent applications.

The researchers' analysis found striking differences between priority-review drugs and standard-review drugs in terms of the proportion receiving a public-sector patent. The direct government role is much more pronounced for the most innovative drugsthose receiving priority review. The data also show that the indirect impact of government funding is much larger than the direct effect. Although fewer than 10 percent of drugs had a public-sector patent, far larger proportions of drugs had patents that cited a public-sector patent, a government publication, or both. In all cases, the public-sector influence was much greater on priority-review drugs than on those receiving a standard review.

Professor Lichtenberg explains the significance of the study. "This analysis underscores why it is important to distinguish between the direct and indirect roles of government funding in pharmaceutical innovation. For example, policies such as recoupment and march-in would apply only to drugs in whose development the government had played a direct role."


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Contact: Sona Rai
sr2763@columbia.edu
212-854-5955
Columbia Business School
Source:Eurekalert

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