Funding of U.S. biomedical research, which enjoyed a “boom” between 1994 and 2003, has since slowed substantially.
It appears that the “boom and bust” cycling of research spending that has prevailed since the 1940s may now be entering a “bust” phase, with the current compounded annualized growth rate at 3.4%, compared with nearly 8% in the late 1990s and early 2000s, said Dr. E. Ray Dorsey of the University of Rochester (N.Y.) Medical Center and his associates (JAMA 2010;303:137–43).
The investigators published a study in 2005 that examined public and private financial support of biomedical research in the United States in 1994–2003. During that interval, the nominal amount of such spending tripled and the adjusted-for-inflation amount doubled.
The researchers have now extended that study to include data through 2008. They tracked funding from four major sponsors of research: the federal government, chiefly the National Institutes of Health, which provides 85% of federal funding; state and local governments; private, not-for-profit groups such as foundations, charities, and medical research organizations; and industry, including pharmaceutical, biotechnology, and medical device firms.
Total funding for biomedical research increased from $75.5 billion in 2003 to $101.1 billion in 2007. Adjusted for inflation, this represents an increase of 14%. By comparison, the U.S. gross domestic product increased by 12% during the same time. Funding, however, increased at a compound annual growth rate of only 3.4% in 2003–2007, compared with a nearly 8% rate in 1994–2003.
Industry spending on biomedical research also has slowed from a compound annual growth rate of 8.1% in 1994–2003 to 5.8% in 2003–2007.
Federal funding increased by 0.7% in the more recent time period, compared with a nearly 100% increase during the previous time period. In particular, NIH funding decreased nearly 9% between 2003 and 2007.
State and local government spending on biomedical research rose just 6% in recent years, compared with a 45% increase in 1994–2003. Funding by foundations and charities also slowed, especially during the recent recession, the investigators said.
Data on 2008 funding were available for only two of the four major sources: NIH and industry. In just that 1 year, data adjusted for inflation show that funding from these two important sources decreased markedly, from $90.2 billion in 2007 to $88.8 billion in 2008.
The declines since 2003 may signal “a trend to favor incremental research rather than high-risk/high-reward avenues,” they added.
Dr. Dorsey reported receiving research support from NIH, foundations, and industry. One other researcher reported relationships with advisory groups that work with foundations and industry.