U.S. Faces Competition for Edge in Pharmaceutical R&D

The U.S. economy operates in a complex global environment that for the first time has seen the emergence of low-cost, high-value innovators worldwide -- a situation that could affect the U.S. pharmaceutical industry's pre-eminence in research and innovation, experts say.

The U.S. drug industry is now operating in an environment in which its model for innovation is being replicated in countries all over the world, said Deborah Wince-Smith at the annual meeting of Research!America, a nonprofit medical research advocacy group with roughly 500 member institutions, including most major pharmaceutical firms.

"We also have global competition for talent," Wince-Smith said during a panel discussion on U.S. efforts to improve research into the life sciences. This competition is evident in the degree of outsourcing the U.S. is now experiencing, she said.

Other panelists also noted the declining interest among U.S. students in pursuing science careers, a trend that is clearly on the minds of pharma executives. "The fundamental fact is that there can't be good science without good scientists," said John Leonard, vice president for global pharmaceutical development at Abbott Laboratories. He noted the U.S. last year ranked 17th globally in the proportion of the college-age students who earned science degrees.