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While other countries are investing heavily to bridge the difference, its innovation remains strong. Its research and development (R expenditures are about four times greater than China’s, whose government has decreed that by 2020 R expenditures will constitute 2.5 per cent of GDP. While quality is difficult to accurately measure, scientific output in the US remains superior. A strong venture capital system supports fledgling businesses.
Already, drug makers are going overseas to emerging markets such as China and India, selling what they call established pharmaceuticals or “branded” generics. Pfizer and Abbott are among those companies making more money on older medications, a sweet spot for companies like Walgreen and Boots that sell generics to price sensitive consumers. business expanding to Europe where Alliance Boots is strong and the economies are shaky.