This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Drop in Funding Loses U.S. Its Biotech Lead

BOSTON (TheStreet) -- The United States used to be considered the premiere, pioneering country when it came to scientific breakthroughs, particularly in the field of biomedical research and technology. In recent years, however, the U.S. has been losing serious ground.

Research out of the University of Michigan finds that U.S. spending on biomedical research has declined significantly in the past few years, while in many other countries it's been holding steady or increasing.

The U.S. global share of biomedical research fell from 51% in 2007 to 45% in 2012 -- an overall drop from $131 billion to $119 billion adjusted for inflation. Meanwhile, Japan and China have increased spending dramatically -- by $9 billion and $6.4 billion, respectively -- leading to an overall rise in Asia's share of research spending from 18% to 24%. Europe remained steady at 29% of the global share.

The results of the study, published this month in the New England Journal of Medicine, indicates that the decline in spending is a direct result of reduced investment from the industry. Even when taking into account decreased funding from the National Institutes of Health, the public sector was accountable for very little of the overall reduction in investment.

Must Read: How to Save When You're in a War Zone

"We were surprised the impact of industry funding was that dramatic, but it's key to note that government funding is equally important to maintain or grow," venture capital investor with Thomas, McNerney & Partners and study co-author Justin Chakma said in a press release. "Research funded through the National Institutes of Health helps scientists understand how diseases work -- this will happen slower as NIH funding continues to be cut."

The U.S. once hovered at a historic high of approximately 80% of the global share in biomedical research spending. And about half of the drugs approved by the U.S. Food and Drug Administration have traditionally been at least partially funded by the federal government during the research and development phase.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 -0.19%
FB $105.45 0.04%
GOOG $750.26 0.28%
TSLA $231.61 0.86%
YHOO $32.94 -0.66%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs