The National Institutes of Health (NIH) annually provides expenditure data on the source and performance of the Nation's health R& D. These tabulations are more comprehensive than the Office of Management and Budget function data presented elsewhere, because NIH attempts to include
According to NIH (1992), sources of nonfederal health R& D support grew considerably faster than did federal sources during the eighties. Public sector financing accounted for roughly two-thirds of the total health-related R& D in 1980; of this, about 90 percent was funded by the federal sector, and the rest was funded by state and local governments. Approximately one-third of the national health R& D total derived from private sources. (See appendix table 4-28.) Overall, about 13 percent of the Nation's R& D expenditures were health-related: 16 percent of federal R& D was for health as was 10 percent of the nonfederal total.
By 1992, government's share of the estimated $28 billion spent on health R& D had fallen to less than half: only 41 percent of total health R& D support came from the Federal Government--mostly NIH--and 6 percent from the states and localities. This decline in the federal share was in spite of a 24-percent increase in the constant dollar support level over the same 12-year period.(Click here for footnote 81.) Private sector support, led by the R& D investments of drug and biotechnology companies, grew by almost 170 percent between 1980 and 1992. As a result of these growth trends, a remarkable 18 percent of the national R& D investment was related to health in 1992; comparable percentage shares of federal and nonfederal funding totals were devoted to such purposes. (See figure 4-11.)
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