Pharmaceutical industry in Germany : R&D

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No industry sector invested more in research and development (R&D) than the pharmaceutical industry. According to the latest report of the Expert Commission on Research and Innovation (EFI), the pharmaceutical industry reinvested 14 % of its turnover from its own products in internal R&D projects.

As in previous years, it is ahead of the automotive, aerospace, mechanical engineering and chemical industries, making it the most research-intensive sector in Germany.

This trend is not limited to Germany alone. The “EU Industrial R&D Investment Scoreboard 2018” of the EU also places the pharmaceutical industry at the top of the ranking of the most innovative industrial sectors with an R&D rate of 15 %.

The high R&D expenditures of the pharmaceutical industry are due to the partly very complex, long, highly sensitive and strongly regulated drug development. According to calculations by various scientists – such as Donald W. Light, Rebecca Warburton, Matthew Herper or Joseph DiMasi –
costs of more than one billion euros can be incurred depending on the drug.


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