Daily Spotlight: U.S. Leads in Drug R&D

Summary

Pharmaceutical and biotech drug development is one of the core competencies of the U.S. economy, along with innovative technology, allocating capital, and aerospace and defense manufacturing. The United States is the undisputed global leader in pharmaceutical and biotech drug development, a position solidified by financial commitment and innovation output. U.S. R&D expenditure in the biopharmaceutical sector is massive, with U.S. companies alone investing over $104 billion in 2024 and contributing approximately 55% of the worldwide total R&D spending in 2023. That dwarfs the investment levels of other nations and regions, such as Europe (which accounted for 22% of global R&D expenditure). This robust investment translates directly into innovation leadership. Indeed, the U.S. Food and Drug Administration approved 105 new drugs in 2023 and 2024, and over a five-year period (2020 through 2024), there were 64 more novel active substances launched in the U.S. than in the top four EU countries and the UK combined. The U.S. market, accounting for nearly half of global pharmaceutical sales, serves as an attractiv

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