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Is There Underinvestment in R&D About Prevention?, Journal of Health Economics

Abstract

Over US$20 billion is spent annually on medical research and development in the United States alone. Although good data are lacking, it is probable that only a tiny percentage goes to R&D about preventive goods and services ('prevention R&D'). In this paper, I hypothesize that this allocation of R&D dollars is inappropriate. Market incentives, combined with regulatory barriers associated with the Food and Drug Administration's 'do no harm' philosophy, make it plausible to conclude that we currently underfund prevention R&D. I find some support for this conclusion in an analysis of current funding of research about vitamin E.

Type

Article

Author(s)

David Dranove

Date Published

1998

Citations

Dranove, David. 1998. Is There Underinvestment in R&D About Prevention?. Journal of Health Economics. 17(1): 117-127.

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