Using Patent Data to Assess the Value of Pharmaceutical Innovation

Despite the pharmaceutical industry’s claims that its research is primarily responsible for new medicines, an analysis of drug innovation found that while industry generates a greater volume of drug-related patents, those originating from non-profit research institutions appear to hold greater importance, underscoring the significant role of publicly funded research in driving drug development. This finding emerged amid concerns about declining FDA approvals, which fell to just 22 new molecular entities and biologics in 2007 (the lowest in 24 years), even as industry revenues continued to rise and regulatory review times remained stable.