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How Industrial Policy Could Accelerate Innovation In The Life Sciences
1James C. Robinson (james.robinson@berkeley.edu), University of California Berkeley, Berkeley, California.
Health Affairs (Project Hope)
|August 7, 2023
Summary
The US is increasing public investment in life sciences due to high drug prices, competition from China, and vaccine successes. This policy shift impacts research, startups, and corporations to maintain global leadership.
Area of Science:
- Life Sciences
- Biotechnology
- Pharmaceuticals
Background:
- US public investment in technology industries, including life sciences, is expanding.
- Drivers include public anger over drug prices, geopolitical competition with China, and optimism from COVID-19 vaccine development.
Purpose of the Study:
- Analyze emerging innovation and industrial policy in the US life sciences sector.
- Examine policy implications for research universities, startups, and large corporations.
- Consider international competition in shaping US public policy.
Main Methods:
- Analysis of emerging innovation policies.
- Review of industrial policy instruments used globally.
- Examination of three key life science sectors: research institutions, startups/scale-ups, and large corporations.
Main Results:
- US industrial policy is adapting to address funding pressures and international competition.
- Policy instruments include grants, equity investments, tax incentives, and procurement strategies.
- The analysis covers universities, startups, and established pharmaceutical/medical device companies.
Conclusions:
- US public policy must strategically address national and international competition to sustain leadership in life sciences.
- The evolving landscape necessitates a comprehensive approach to innovation and industrial strategy.
- Understanding sector-specific dynamics is crucial for effective policy implementation.
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