New report reaffirms value of medical R&D in Australia

A new report released by Lateral Economics and launched yesterday at AusBiotech 2010, underscores the social and economic value of medical R&D, said drug industry trade group Medicines Australia’s chief executive Brendan Shaw.

The Lateral Economics report indicates that, if health and medical research spending were to at least keep pace with historical spending on health over the decade and a half to 2021-22, then revenues of A$73.7 billion ($72.9 billion) could be generated, while health benefits could approach A$150 billion (based on Access Economics’ estimate of A$2.17 in health benefits for every health and medical research dollar spent). The report, titled Economic Value of Australia’s Investment in Health and Medical Research, was commissioned by Research Australia.

“This report sets out compelling evidence of the enormous return that Australia derives from investing in medical research,” Dr Shaw said. “It highlights the importance of a stable, long-term R&D policy environment. We simply can’t afford Australia’s R&D investment commitment to be compromised by short-term fiscal challenges.