Fair Value for Innovation & Creativity
The Fair Value for Innovation Campaign is a project under the U.S. Chamber of Commerce’s Global Innovation Policy Center.
Along with a coalition of like-minded partners, the Fair Value for Innovation Campaign is sharing the facts on innovation and creativity—its roots, its impact, its social and moral imperatives, and the public policy prescriptions that will assure a continued upward trajectory for the generations to follow.
In the last three hundred years, life has improved more rapidly and dramatically than in all the millennia that proceeded them—the result of technological breakthroughs and the longevity and social and economic mobility they enabled. The economic and policy underpinnings of this innovation revolution remain misunderstood and under-appreciated, leading to a danger—perhaps an increasing reality—that future innovation could be taken for granted, cheapened, and ultimately forfeited.
The Fair Value for Innovation Campaign sets out to re-claim and re-cast the story of innovation.
- Localization policies
- Public procurement
- Forced technology transfer/licensing restrictions
- Investment restrictions/local partnering requirements
- Local content requirements
- Import limitations/bans
- Sector specific import and distribution limits such as for film and music
- Pricing & Reimbursement policies
Statistics on New Medicines Availability and Delays in IPI Countries vs. United States
- 800,000 Americans have jobs in bio-pharmaceutical R&D, which supports 4.7 million additional U.S. jobs.
- The United States is the global leader in bio-pharmaceutical R&D, accounting for more than half of the over 7,000 drugs currently under development worldwide.
- The U.S. bio-pharmaceutical industry invested $90 billion in R&D in 2016 alone.
- It takes 10 years of work and $2.6 billion, on average, for one new medicine to reach a patient in need.
- Most bio-pharmaceutical R&D start-ups go 20 years without a profit, making them dependent on access to financing, which in turn depends on reliable intellectual property rights and market pricing mechanisms.
- Global price controls reduce bio-pharmaceutical R&D investment by 11-to-16 percent, per year.
- Every $1-to-2 billion reduction in R&D investment means one less new medicine per year. Which disease will go untreated as a result?
- Eliminating developed country price controls now would enable nine percent more new treatments (equivalent to eight to thirteen new medicines) to reach patients by the year 2030.
- More than 1,100 cancer medications currently under development would be negatively impacted by the administration’s international price indexing (“IPI”) proposal, including promising gene therapy, immunotherapy, and CAR-T Cell therapies.
- International reference pricing along the lines of IPI has a negative multiplier effect: Each price cut is magnified over seven times as additional countries adjust their price comparisons correspondingly.
- Even where drugs are available in reference pricing countries, they reach patients 17 months later than in the United States.