1、 itif.org Not Again:Why the United States Cant Afford to Lose Its Biopharma Industry SANDRA BARBOSU|FEBRUARY 2024 Americas leadership in advanced-technology industries can never be taken for granted,as evidenced by its losses in telecommunications equipment,semiconductors,televisions,solar panels,an

2、d chemicals.Policymakers must recognize what went wrong in those cases to avoid a similar industrial decline in the biopharmaceutical industry.KEY TAKEAWAYS The biopharmaceutical industry is crucial to the U.S.economy.America leads this sector globally thanks to its large domestic market,robust IP p

3、rotections,limits on government drug price setting,supportive science policies,and supportive innovation clusters.But as China commits to achieve biopharmaceutical leadership,the United States is neglecting its position,hamstringing the industry with government-imposed price controls and policies th

4、at weaken foundational IP protections.Absent sustained policies that provide a supportive environment for pharmaceutical research and innovation,it is likely the United States will decline and China will advance.The United States has a long history of initially leading in advanced industries,only to

5、 subsequently lose its competitive advantage to other countries with more effective industrial policies and more patient private sector capital.Policymakers should heed the lessons of U.S.decline in five such industries telecommunications equipment,semiconductors,television,solar panels,and chemical

6、s and apply them to bolster the U.S.biopharmaceutical industry.To maintain leadership in biopharmaceuticals,the United States should continue robust federal R&D investments,restore a strong IP environment,and avoid government drug price controls.Rather than attacking“Big Pharma,”policymakers should