The US life sciences sector may be at risk of losing its global leadership position, according to a new report released by the Information Technology and Innovation Foundation (ITIF).
US Globe
ITIF states that the sector faces aggressive foreign competitors who employ a range of practices that threaten America’s leadership position.
The report mentions that the US life sciences industry has lost ground in the past 10 years, due to aggressive competition from other nations. International competitors were found to be artificially inflating the US trade deficit in the sector by relying on the government to purchase drugs and devices to limit US firms’ export prices.
The report also mentions that other nations are also receiving the benefits of better treatments from the US without supporting research and development, limiting global drug and device innovation.
For the US to bolster its life sciences industry, it can implement stronger tax incentives for innovations, restore prior funding levels, take more forceful action to address unfair trade practices and expand and improve workforce training in STEM subjects.
The report also states that the US should pass healthcare reforms that restore long-term stability and provide adequate reimbursement and continue to value the role robust IP rights play in underpinning life-sciences innovation.
Author of the report, ITIF senior fellow Joe Kennedy, said: “The U.S. life sciences have long been a step ahead of international competitors. But, once lost, that competitive advantage is extremely difficult to regain. If the United States wants to remain the world’s leader in life sciences, it needs to improve support for research, investment, training, and government regulatory approval processes, and it needs to aggressively counter unfair trade practices abroad, including pushing back against foreign price controls.”
“Losing the competitive advantage in the life sciences would mean declines in jobs and incomes for many Americans and a larger trade deficit. Policymakers need to optimize policies affecting the life sciences sector so that the United States is in the best position to increase its global market share and competitiveness.” Kennedy said.