[Pharm-policy] US government and Industry R&D expenditures compared, 1991 to 1994

James Love love@cptech.org
Tue, 18 Jan 2000 14:54:57 -0500


I was asked to provide a comparison between pharmacuetical industry and
US government health care R&D expenditures.  This table looks at the
PhRMA/IRS data on pharmaceutical R&D expenditures, and the US Department
of Health and Human Services (DHHS) R&D expenditures.  This isn't a
straight up comparison, however, because the federal government funds
R&D through other departments, including the Department of Energy and
the Department of Defense, and not all DHHS R&D is compariable (Not all
of industry or government R&D is releated to development of new drugs). 
It is, however, instructive, that even before the recent increases in
the NIH budget, the DHHS R&D expenditures were considerably higher than
the qualifying R&D expenditures from IRS tax returns.  

  Jamie


               US R&D spending by 
            Pharmaceutical Companies
                 and US DHHS
            (billions of US dollars)

	   PhRMA 	IRS*	    DHHS**
	   Survey	Returns	    R&D

1991	   $ 7.9	$4.4	    $ 9.8
1992	   $ 9.3	$5.1	    $ 9.1
1993	   $10.5	$5.9	    $10.5
1994	   $11.1	$6.6	    $10.4


*Form 6765 qualifying expenditures
** NSF's Survey of Federal Funds for Research and Development

-- 
James Love
http://www.cptech.org
mailto:love@cptech.org
voice 1.202.387.8030