Donald Light, a visiting professor at Stanford University, claims a "re-analysis of data" from of new drugs released between 1982 and 2003 "contradicts the claim that US drug firms overtook European firms in pharmaceutical innovation".
This view goes against arguments that a fragmented patent market and duplication of research are holding back EU competitiveness in the area of research and development (R&D) (EurActiv 10/03/09).
There have also been concerns about anti-competitive practices by big pharmaceutical groups stifling the innovation and competitiveness of drug research in the sector (EurActiv 17/01/08).
The share of drug-related R&D funding in the US and Europe has changed markedly over the last few decades, Light argues. In 1990, Europe accounted for half of total spending on R&D in Japan, the United States and Europe, whilst America spent a third. By 2000, America's share had increased to 48%, whilst R&D funding in Europe had decreased to 37%.
However, this change in spending has not been reflected by a greater quantity and quality of drug discoveries in the US, maintains Light. In terms of productivity, measured by the number of new drugs discovered in proportion to funding, Europe shows "greater and increasing research productivity," whilst overall US productivity has declined. He adds that in America in particular, many of the new drugs brought onto the market had little added medical value over existing medications: "In short, commercial success is often distinct from therapeutic importance."
The news comes as a surprise in the EU following previous reports that EU expenditure on R&D has been falling behind that of the United States, hampering the bloc's aim of becoming the world leader in research and innovation (EurActiv 10/02/09).
The EU has taken some steps to boost pharma industry research, including allocating €2 billion of funding to improve the speed of new drug development (EurActiv 05/05/08).
The recent article concludes there is "strong, general evidence that US firms have not overtaken their European counterparts in pharmaceutical innovation," and, going even further, that "given the new institutes in European countries […], returns on R&D investment in Europe may increase in further during the next decade of 2004-2014".
In terms of policy implications, the professor reflects that "lower European prices seem to be no deterrent to strong research productivity," good news for those in the US concerned about the price of new patented drugs.
