The Return to Biomedical Research: Treatment and Behavioral Effects

Abstract

This paper estimates the value of medical research, using cardiovascular disease as a case study. We highlight two roles of medical research: the new therapies it leads to; the information that is provided to consumers, allowing for health-improving behavioral changes. We estimate the return to new medical treatments at about 4 to 1 and the return to health knowledge at about 30 to1. In both cases, innovation has very high returns.