A Government Agency That Produces Real Innovation What does Trump have in common with the National Institutes of Health? Patents. By Mike Kalutkiewicz and Richard L. Ehman
https://www.wsj.com/articles/a-government-agency-that-produces-real-innovation-1498170674
In a budget proposal generating a quick rebuke on Capitol Hill, President Trump calls for a 22% cut to the National Institutes of Health—a move that would take $7.7 billion away from research on diseases like Alzheimer’s, cancer and heart disease. This is an unfortunate request. The NIH is one of our most strategically important federal assets.
Rather than hacking away at the topline budget, the administration should play to the innovative strengths of NIH. This may mean a more mission-oriented approach—using science to help create new sectors and fields. But it could also mean a more market-oriented approach that prioritizes the development of high-quality patents.
In a new Manhattan Institute report, we find that NIH does particularly well in this regard: Its patent portfolio produces 20.4% more market value than average patents, with every $100 million in NIH funding associated with $598 million in downstream private research and development. For some of NIH’s most productive programs, total downstream R&D is as high as $3.3 billion for every $100 million in grant funding.
Patents aren’t everything—scientific knowledge is the main product of public R&D. But slashing away so much potential new technology via broad budget cuts will endanger discoveries that serve as the commercial foundation for new companies, jobs and exports in biotech and the life sciences.
By contrast, Mr. Trump’s budget proposal would provide the Defense Advanced Research Projects Agency a 10% increase. If the administration likes Darpa’s impressive record of radical innovation, it should love NIH’s patent hubs, particularly the Institute of Biomedical Imaging and Bioengineering and the Human Genome Research Institute. These two NIH programs produce twice as many direct and indirect patents as the renowned defense program.
While the research community sometimes considers patents to be a “less pure” derivative of science, patentable discoveries have been an integral part of some of medicine’s most innovative and transformative breakthroughs. Our research also shows that of NIH’s 33 teams of Nobel laureates between 1990 and 2010, more than 75% patented their discoveries at a prolific rate. They weren’t always blockbuster new drugs. Most of the time, new patents represent advancements that push an existing field of research forward, or allow entirely new lines of inquiry to be examined.
The product of a grant from NIH’s Heart, Lung and Blood Institute, the “lab on a chip” is a series of microscopic valves and tubes, which combine to create a “fluidic circuit” that can be used to diagnose infectious diseases quickly and cheaply. It is among the NIH innovations most cited by downstream developers in the life-science sector. The NIH’s Institute of Diabetes and Digestive and Kidney Diseases invented a tiny under-the-skin sensor that continuously monitors blood-sugar levels in patients with diabetes, a big upgrade in accuracy and patient comfort.
Fostering patentable innovation should appeal to President Trump. He is the only U.S. president other than Abraham Lincoln to have his name on a U.S. patent header. Though he wasn’t the inventor, Trump Taj Mahal Associates’ 1996 patent for a “Proportional payout method for progressive linked gaming machines” makes Mr. Trump, at least indirectly, the second presidential patenter. CONTINUE AT SITE
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