Originally posted by: XZeroII
I think this was mentioned earlier, but anyway...
The % of GDP includes medical research, private insurances, doctor costs, etc... The US does more medical research than probably the rest of the world combined (I'm guessing).
yes you are a bit guessing
the US is leading for the moment but Europe for exampling is catching up and there is not that big a gap between the two to explain the big difference in spending for healthcare (% GDP)
For most of the past decade, Europe has led in pharmaceutical innovation. In 1997, however, the US overtook Europe for the first time, both in terms of research and development (R&D) investment and output (new drug candidates). In 1990, EU pharmaceutical industry spent 73% of its R&D budget in Europe, but this figure dropped to only 59% in 1999 and the US is now spending 24 billion euros compared to 17 billion euros in the EU. Spurred by more open market regulations, the world market share of US pharmaceutical products jumped in the same period from 31% to 43%, while in price-controlled EU the figure dropped from 32% to 22%.
The competitiveness of US industry has also benefited from a more vigorous exploration of new technological opportunities. Increased professional technology transfer from the public research sector and the establishment of a vibrant biotechnology industry is providing innovative products based on new biotechnological developments to the pharmaceutical industry.
On the rise again
The EU is nevertheless catching up. A large number of Member States, including France and Germany, have recently put in place new regulations for the exploitation of publicly funded research, or implemented tax laws favoring research investments similar to the UK. Some Member States are also actively supporting the establishment of professional technology transfer structures. The number of biotech companies in Europe increased dramatically in recent years. In 2001 there were more companies in the EU (1879) than in the US (1457). Although turnover and employment figures in the US industry are double those of the EU, the EU growth rates have consistently outperformed those of the US in recent years, thus starting to close the gap. Interestingly enough, the EU industry was able to reduce its net loss by 16% to US$1.5 billion in 2001, while losses in the US industry, mostly public companies, increased 15% to US$6.9billion.
Europe was always a powerhouse in the sector of the pharmaceutical and biotech industry
link