US health-related research funding flat

Total US investment in health-related research grew a modest 4.2% from 2005 to 2006, significantly slower than the 6.8% increase in health costs, according to a report released by Research!America, a not-for-profit public education and advocacy alliance. The country spent approximately $116.0 billion last year on research to find new ways to treat, cure and prevent disease and disability. This represents a decrease relative to total health costs. For every dollar spent on health overall, $0.055 went to research in 2006, the smallest portion since 2001. This decline continues a trend that started in 2005, following a flattening in federal research spending that began in 2004, the report states.

Industry spending on R&D, which has for several years exceeded federal sources, increased only slightly from $61.0 billion in 2005 to $64.5 billion in 2006. However, this growth is overshadowed by the fact that a leveling out of public funding has in the past led to a similar stagnation in private funding, says Research!America.