Did Europeans kill off drug innovation?
Impactiviti is a great blog but sometimes I disagree. Like today with this post, How to Kill Off an Industry.
The article Impactivit refers to claims that since growth rate of drug company research in Europe is not the same as the US this "proves" universal healthcare doesn't work.
This is a very common argument. Only problem is that it isn't valid.
Drug companies are global organizations. If European drug companies do worse than US drug companies, that is not because US is a better market, but because the US companies have better drugs. They all sell in the same global market place.
And if less R&D is allocated to Europe than the US, this could of course be some kind of retaliation by both European and US drug companies, but it could also be that the US is the leading country in the world and that most research is being done here, which attracts know-how and more research.
Clearly drug companies don't seem to have a problem with the fact that they pay research scientists salaries that are two, three, sometimes four times higher in the US . . . than in Europe.