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Effect of Healthcare Systems on theGrowth and Development of Biotechnology

Kevin Yang

TECH566

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Biotechnology

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U S vs. European Model

Address the demand for care for Employers, employees, elderly, disabled, and low income earners

the general public

Funding National, regional, and state governments

Private sector

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European (NHS in Great Britain)Started in 1948

3 Basic PrinciplesU niversalityU nitU niformity

GPs serve as the entrance to the health system (besides emergencies)

NHS hospitals enter in contracts with providers for their medical services: thus promoting competition and reduces pricing (generally speaking)

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U S healthcare

Based on private insurance without the concept of universal coverage

Public programs funded from taxes (Medicare and Medicaid)

Coverage through voluntary contracts with private insurancecompanies

Most insurance is through employers

Public and private are not mutually exclusive

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U S assessment

First in:Total per capital expenditure

Total volume of drug consumption

In share of GDP devoted to health

Spending for private health services

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Biotech Innovations in the U S: Benchmark for success

Not as the direct result of the Healthcare system

U S has the largest economy

Largest pharmaceutical market No price controls

Drug patents last 20 years

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Favorable Politics inU

SBayh-Dole Act (1980)

Orphan Drug Act (1983)

SBIR funding

Europe No Bayh-Dole equivalent

Orphan Medicinal Products (2000)

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U nited States

Home to leading scientists12 Nobel winners medicine were American born scientists (2009 data)

Top medical innovations came from the U SCT scans

ACE inhibitors

MRI

Cultivation of Entrepreneurial spiritFollowing the footsteps of the technology sector

Availability of venture capital (in the nascent days)

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Factors Influencing Competitiveness inBiotechnology (OTA)

Financing and tax incentives

Government funding for basic and applied research

Personnel availability and training

Health, safety and environmental regulations

Intellectual property law

U niversity/industry relations

Anti-trust law

International tech transfer, investment, and trade

Targeted public policies in biotechnology

Public perceptions

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Conclusions

Healthcare system in itself does not really promote or inhibit

biotechnology innovation

Environment and the government plays a much larger role

Biotechnology is market driven

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Sources

David Nexon and Stephen J. U bl. Implications of Health Reform for the MedicalTechnology Industry. Health Affairs, 29, no. 7 (2010): 1325-1329

Aleksandra Torbica and Giulia Cappellaro. U ptake and diffusion of medicaltechnology innovation in Europe: What role for funding and procurement policies? Jou rnal o f Medical Marketing, 10, no. 1 (2009): 61-69

Nicolas Odier. The U S healthcare system: A proposal for reform. Jou rnal o f Medical Marketing, 10, no. 4 (2010): 279-304

IMS Health Prognosis, 2009

Chase-Dunn, Christopher, Lara-Millian, Armando, and Richard Niemeyer. B io techn o l o gy in the Gl ob al P o litical Ec o nom y. Institute for Research on World-Systems. U niversity of California, Riverside: 2004.