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United States United Kingdom Russian Federation France Germany Canada Japan Italy
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Government R&D Devoted to Defense (Percent)
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FIGURE 4.17 Percentage of government research and development devoted to
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military or defense purposes, 1999.
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Source: NSF Science and Engineering Indicators 2002
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Not only does the United States dwarf the other G-8 countries in rela tive expenditure on military (defense) research and development, but it is the overwhelming leader in absolute defense research and development spending as well. According to the National Science Foundation (NSF), in 1999 the United States spent $41.3 billion on defense research and devel opment, compared to $3.1 billion for the United Kingdom, $1.15 billion for the Russian Federation, $2.9 billion for France, $1.3 billion for Ger many, $168 million for Canada, $908 million for Japan, and $186 million for Italy. Given that the contribution of the United States represents over 80 percent of the G-8 total investment in research and development, the following discussion of the military biotech market is focused on the con tribution of United States.
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Defense Spending in the United States
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In the United States, the proportion of the total research and development budget allotted to defense purposes has been greater than that for nonde fense purposes through the 1980s and 1990s. However, as shown in Figure 4.18, in 2000, just as in 1980, the investments were approximately equal. Piecing together the contribution of federal funding to military re search and development in biotech is complicated by the nature of biotech nology. Research in visualizing the structure of proteins, for example, may have direct and immediate military applications, though it is attempted by a nonmilitary organization. In addition, much of the research and develop ment supported by defense budget may have little bearing on biotech. As shown in Figure 4.19, the distribution of the DOD-funded acade mic research budget for 1999 was about 26 percent for life sciences and about 35 percent for computer science, or a total of just over 60 percent of the total $1.2 billion academic research budget. This $1.2 billion repre sents about 8 percent of the total budget of nearly $15 billion. The contri bution of the DOD to academic research and development increased to 9 percent in 2001 out of a total budget of $17.7 billion. Although research and development computer science and the life sciences are key to advanc ing biotech, it isn t clear how many of the research projects funded by the DOD have direct, immediate impact on biotech. Even when information on individual research projects is available, it often isn t clear how basic re search applies to immediate development challenges. More informative is the distribution of funds by individual military and civilian agencies. Each agency often referred to by potentially con fusing acronyms typically has a speci c focus and a separate budget re garding biotech research and development. The biotech focus of a sampling of key agencies is summarized in Figure 4.20 and described in more detail here.
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Military Biotech
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Defense Nondefense
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FIGURE 4.18 U.S. Federal defense and nondefense research and development
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funding, based on constant 1996 dollars. 2004 gure represents the president s request. Source: NSF Science and Engineering Indicators 2002, American Association for the Advancement of Science
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Department of Homeland Security (DHS). A major source of funding for military biotech research and development is the newly established umbrella organization, the U.S. Department of Homeland Security (DHS), which subsumes many tasks once allotted to Department of Defense. Prior to the formation of DHS, the Defense Advanced Research Projects Agency (DARPA) was the central research and development organization for the Department of Defense (DOD). DARPA managed and directed selected basic and applied research and development projects for DOD. With the formation of DHS, responsibilities have shifted. For example, the Biologi cal Defense Initiative (BDI), a project of the Defense Threat Reduction Agency (DTRA), was canceled as of 2003 because activity was moved un der the auspices of the DHS. Other federal agencies interact under the um brella as well, for example, the Department of Health and Human Services (HHS) is involved with the development of biodefense vaccines, therapeutics, and diagnostics.
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