Funding Health Sciences Research A Strategy to Restore Balance (1990) / Chapter Skim
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2 Funding for Health Sciences Research
2 Funding for Health Sciences Research
Pages 32-61
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From page 32... ...
Of the remainder, industry supported about 45 percent, and private nonprofit organizations supported about 4 to 5 percent (Figure 2-1~. This ratio has changed slightly over the past decade, while the nation's investment in health research has tripled in current dollars (Figure 2-2~.
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From page 33... ...
The federal government's investment that year totaled $3 million-about 15 percent of the total, most of which was spent in its own laboratories. Some university-based investigators eschewed governmental support, fearing the loss of intellectual freedom and undue influence on their research.4 During World War II, basic research in the sciences made significant contributions to the success of the war effort.
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From page 34... ...
His report to the President, entitled "Science, the Endless Frontier," proposed a coordinated federal policy of investing in research and training new researchers.5 The policy was to be driven by scientific merit rather than by political or geographical interest. Subsequently, Bush and his colleagues in OSRD established a system by which grants and contracts were awarded to institutions based on scientific merit, and this approach became the cornerstone of the peerreviewed, academically based system now in place for federally sponsored, competitive extramural research grant programs.
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From page 35... ...
, research organizations, and hospitals, and approximately one-quarter is performed in federal laboratories (Figure 2-5~. Whereas the majority of industrial health sciences research is performed within corporate facilities, only a small fraction of federally sponsored research is performed in private industrial laboratories.2 The broad array of research sponsors and the decentralized nature of
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From page 36... ...
FEDERAL SUPPORT FOR HEALTH SCIENCES R&D NIH and ADAMIlA Before World War II nearly all federally sponsored health research was conducted in the government's own laboratories. The precursor to NIH, the Laboratory of Hygiene (later renamed the Hygienic Laboratory)
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From page 37... ...
However, the rate of growth in funding for health sciences research slowed after 1965 in the wake of increased expenditures for the domestic human service initiatives of the Johnson administration and the Vietnam War.8 Despite this declining rate of budgetary growth, NIH continued to expand its role in the health sciences and underwent various reorgan~ lions during the 1960s and 1970S.7 In 1967 the National Institute of Mental Health (NIMH) was removed from NIH and established as a separate bureau within the PHS.
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From page 38... ...
Inflationary pressures in the 1970s reduced the purchasing power of research funds, fostering the academic community's perception that the financial base of federal research support was eroding.9 In response, the director of NIH advised Congress to stipulate the minimum number of new and competing research project grants that NIH would be required to support with its annual appropriations. This policy became known as "stabilization." Beginning in fiscal year 1981, NIH and ADAMHA were required to support 5,000 and 569 research project grants, respectively.
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From page 39... ...
The Small Business Innovation Development Act of 1982 established a program to grant federal research funds to for-profit businesses by all federal agencies with more than $100 million budgets for R&D.7 This legislation called for a phase-in of the program over 4 subsequent fiscal years-from 1983 to 1986. Currently, all federal agencies awarding extramural research funds must allocate 1.25 percent of their annual R&D appropriations through this program.
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From page 40... ...
is to assist state and local health authorities and other health-related organizations in stemming the spread of communicable diseases, protecting the public from other diseases or conditions amenable to reductions, providing protection from certain environmental hazards, and improving occupational safety and health. Additionally, the CDC is responsible for licensing of clinical laboratories engaged in interstate commerce, for conducting foreign quarantine activities aimed at preventing the introduction of disease into the United States, and for developing scientific criteria for occupational health hazards.
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From page 41... ...
In constant 1988 dollars, research funds at CDC grew from $56.6 million to $95.5 million between 1984 and 1989 (Figure 2-10~. Increases were greatest in fiscal years 1987 and 1988, when research funds grew by 18.8 and 26.8 percent, respectively, in constant dollars.
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From page 42... ...
It was also within the center's purview to coordinate health services research in the PHS and to disseminate the * There is a discrepancy between the NIOSH appropriations for research in the conference report from Congress ($60.5 million for fiscal year 1989)
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From page 43... ...
Thus, Congress made available in the NCHSR's 1989 allocation $5.9 million from the Medicare trust funds, $3.9 million from the Federal Hospital Insurance Trust Fund, and $2.1 million from the Federal Supplementary Medical Insurance llust Fund to fund outcomes research funds that will support extramural research projects based on competitive peer review by NCHSR. These responsibilities have been transferred to the newly created Agency for Health Care Policy and Research (AHCPR)
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From page 44... ...
First, patient recruitment for clinical investigations is easier for the VA than for NIH. Second, the costs for the standard medical care portion of clinical investigations are charged to health care delivery funds rather than research dollars; thus, only the marginal costs of the research consume research appropriations.
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From page 45... ...
. NSFs mission specifically excludes disease-related clinical research, which falls under the purview of NIH; therefore, NSF funds primarily are used for investigating basic biological processes that help shape the foundation for biomedical research.
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From page 46... ...
As the agency shifts from short-term space flights to more extended missions aboard the Space Station Freedom or to Mars, NASA will need to address specific questions relating to a microgravity environment, but because NASA has a very small life sciences budget, it must rely heavily on programs funded by other federal agencies. Most of NASA's life science expenditures support intramural programs tailored to meet specific agency objectives.
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From page 47... ...
the Life Sciences Programs Directorate of the Office of Naval Research. Of the three branches, the USAMRDC receives the largest allocation of DOD funds for military health sciences research about 80 percent of the total DOD health sciences research budget.
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From page 48... ...
These funds support research in several areas of neuroscience, experimental psychology, toxicology, visual and auditory psychophysics, radiation biology, and cardiovascular physiology. The Office of Naval Research funds health research through the Life Sciences Programs Directorate.
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From page 49... ...
Although most corporate R&D is done "in house," industry relies heavily on university research programs for basic knowledge and scientific talent. However, pharmaceutical firms generally contract with clinicians in academic centers to test compounds in all phases of clinical trials.
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From page 50... ...
While few companies provide training funds for predoctorates, several sponsor postdoctoral fellowships in their own research facilities. Also, the Pharmaceutical Manufacturers Association Foundation (PMAF)
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Of the 296 dedicated biotechnology firms contacted in the first survey, 63 (21 percent) were involved with human therapeutics and 52 (18 percent)
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From page 52... ...
The NSF surveyed corporations engaged in biotechnology research as a pilot study for future investigation of industrial R&D in emerging technologies.20 In 1986 and 1987 the NSF sent questionnaires to firms expected to spend at least $1 million annually on biotechnology R&D. A total of 54 firms responded to both surveys a total estimated to account for half of all industrial investment in biotechnology R&D.2i These 54 companies increased their R&D investments by 20 percent In 1985 but by only 16 and 12 percent, respectively, in 1986 and 1987.
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From page 53... ...
The 1981 Economic Recovery Fix Act provided a tax credit for incremental increases in R&D spending to foster additional investment and stimulate technology transfer. In a recent report, the General Accounting Office estimates that the tax credit stimulated between $1 billion and $2.5 billion of additional R&D between 1981 and 1985.
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From page 54... ...
Under this arrangement, Monsanto is expected to have provided the university with $62 million for research by 1990.~6 NONPROFIT ORGANIZATIONS During the nineteenth and the first half of the twentieth centuries, private nonprofit foundations constituted a primary source of funds for health sciences research. Many early foundations were established to benefit particular institutions or to address specific social or health problems.
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From page 55... ...
The NIH estimated that private nonprofit organizations contributed about $700 million (or about 4.3 percent of the total) , to health R&D in 1988.2 However, this figure probably underestimates the role of philanthropy in health sciences research by excluding endowed professorships and donations for facilities and equipment.
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From page 56... ...
Common types of foundation support include individual research project grants, predoctoral and postdoctoral fellowships, equipment grants, publication expenses, special library collections grants, and sponsorship of conferences or workshops. Large, independent foundations contributing to health sciences research include but are not limited to the following: the Lucille P
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From page 57... ...
The six largest voluntary health agencies (in terms of revenues) are, in descending order, the American Cancer Society, the American Heart Association, the March of Dimes-Birth Defects Foundation, the Muscular Dystrophy Association, the National Easter Seal Society, and the American Lung Association.
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From page 58... ...
Grant awards from these organizations commonly range between $20,000 and $50,000. Voluntary health agencies also act as lobbyists for increases in diseasespecific funds for NIH.
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From page 59... ...
SUMMARY AND CONCLUSIONS The committee concluded that health research is supported by a diverse, yet interlocking network of federal agencies, industry, and private nonprofit organizations. Of these, the federal government is the single largest sponsor of health research in the U.S.
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From page 60... ...
economic competitiveness. Foundations, voluntary health agencies, and other nonprofit organizations have played a very important role in sponsoring health research.
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From page 61... ...
1972. Politics, Science, and Dread Disease: A Short History of United States Medical Research Policy.
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