Eric Cantor Hawks Medical Industrial Policy | Michael D. Tanner | Cato Institute

Eric Cantor Hawks Medical Industrial Policy | Michael D. Tanner | Cato Institute: "empirical studies suggest that the rate of return on publicly financed research is much lower than that of research financed by the private sector. While the private sector may be more focused on applied research, and the government is more effective at basic research, the distinction between those categories is rapidly disappearing.

Second, we should ask whether government funding of medical research is really necessary. There is no proof that the private sector is incapable of financing medical research, either for profit or as charity. While private companies undoubtedly have an incentive to fund research that they believe will ultimately prove profitable, even “orphan” drugs — one of the least profitable lines of research as they are designed for a small number of people with rare disorders — have found funding through the Bill and Melinda Gates Foundation and other charities."

"No evidence shows that government bureaucrats have either the qualifications or the incentives to make better decisions than private individuals and organizations about what research should be funded. After all, government involvement in research inevitably injects politics into scientific questions.

If a disease affects a favored political constituency or can mobilize a telegenic celebrity spokesman, it is likely to receive boatloads of money. If not, it is likely to be relegated to the back of the scientific bus.if private companies believe governments will pay for research, they may simply withdraw their own money. Thus, government funding in this area doesn’t result in more research, just a different funding stream."

"former NIH Director Elias Zerhouni has warned that congressional mandates to spend money on specific diseases have undermined the agencies’ research."

"an analysis of NIH grants found that black research scientists were 10 percent less likely to receive research funding than a white scientist from a similar institution and with the same research credentials.

Some researchers worry they can have their grants cut for challenging the scientific consensus or for reaching conclusions that are politically controversial. This is dangerous, because a willingness to rethink current theories is a key to scientific advancement."