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We estimated that the GDP gains that result from
increased public/charitable medical research deliver
an additional rate of return in the range 20–67% (with a
best estimate of 30%). (Page 7)
Economic returns to medical research comprise two,
• health gains net of the health care costs of delivering
• GDP gains, that is to say the UK national income
that results directly and indirectly from the medical
research and the further activity stimulated by it.
1 two-stage approach:
a) estimating the private R&D stimulated by public
b) estimating the social rate of return to the private
R&D so stimulated
2 one-stage approach: a direct estimate of the social
rate of return generated, by whatever transmission
mechanisms, by public medical research
But because empirical estimates to enable the one-stage approachThe one-stage method uses data from the US to get 1a above, that is, the crowding in effect of public R&D and then uses an average of the public rates of return of private R&D , see page 38, based mainly on US manufacturing studies.
to be taken come only from non-medical sectors (mainly
agriculture), we considered it desirable to provide a
check by undertaking the two-stage estimates as well,
as described in the following paragraphs.