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1、IncentivesforPharmaceuticalResearchandDevelopment:InvestigatingtheImplicationsoftheBayh-DoleActonNonprofitBasicScienceResearchAdamHarvey12/08SeniorthesissubmittedinpartialfulfillmentoftherequirementsforaBachelorofArts(orScience)degreeinEconomicsattheUniversityofPugetSound251.IntroductionScienti
2、ficresearchhasredefinedoursocietyinthepast30years,wheretechnologicalgrowthandscientificdevelopmenthaveredefinedeverydaylife.Specifically,theresearchanddevelopmentofpharmaceuticals,withthedevelopmentofviralvaccinationsandantibiotics,havepermanentlychangedoursociety.Overthepast20yearstherehasbeen
3、adramaticincreaseinspendingonthebiomedicalsciences,asscientists,aswellasinvestorsandventurecapitalists,havebeguntoestimateandanticipatenewmajorbreakthroughsinbiotechnology(Pisano,2006).ThisapparentincreaseinscientificresearchhasbeenpartiallyaccreditedtotheBayh-DoleActin1980,whichexplicitlyallow
4、edthepatentingoffederallyfundedresearch.However,astimehaspassed,researchhasshownthattheincreaseinspendinghasnotcausedaanyincreaseintheoutputofnewpharmaceuticals,whereinsteadthemarginalincreaseofdrugoutputhashoveredaround0(Mowery,etal.,2001).Thisisperhapsindicativeofsomefundamentalflawinthecurre
5、ntpolicy-basedincentivestructurefortheprocessofscientificresearchanddevelopment.Theoretically,thepaththatscienceinventionstake,fromaninitialnoveldiscoverytoamarketabledrugisalinearprocess.“Basic”scienceisscientificinquirywherenewdiscoveriesaremade,i.e.thediscoveryofanovelgenemutatedincancer.Thi
6、sisusuallydoneinmodelorganisms,suchasthefruitfly,Drosophilamelanogaster.“Applied”scienceisscientificinquiry,basedondiscoveriesmadeinbasicscience,whichexaminethediscovery’spotentialapplicationtodiseasetreatment.Thesestudiesaredoneonmammalianorganisms,whereofteninquirieswillfirstexamineasimplemam
7、mal,usuallyaratormouse,andtheneventuallyleadtostudiesinhumantissuesinvitro(outsidethebodyintissuecultures).Onceagoodunderstandingofthemammaliandrugtargetisachieved,theinformationispublished,andlarge25pharmaceuticalcompaniestaketha
