Researchers, not just serves working. I hesitate to do this because he represented the state that is the most affected but i would love to see if someone has the courage to question the scale of money we give the universities for administering this. You look at the percent are part gets percent harvard gets. Come on guys, cant work that go straight into research . Sen. Warren let me ask you the question on the funding part of this. Should we be doing Capital Budgeting as a way to increase the funding substantially for nih . In order to fund nih, do we have to cut shortterm spending . Speaker gingrich we dont have to. I would take it off budget and issue an alzheimers bond. The longterm tidal wave is so enormous the most fiscally prudent thing you can do is to find a way to undercut that wave through research. I and happy to defend that notion anywhere in the country in terms of talking with conservatives. There is no all are other alternative that works. If you look at how the navy builds aircraft carriers, they cannot put the money in so they cannot buy the entire carrier but they can send a contract that makes it prohibitive to not complete the carrier. It is a clever sleight of hand. I do think we should find ways to fund fairly large projects over at least a four or five year period. I am a constitutional conservative. I believe congress has control over things but i think there are practicalities. The Transcontinental Railroad could never have been built on an annual budget. They had to design a plan that enabled them to get the capital over a multiyear time and i think i would challenge this puts my friends in a bind i would challenge nih to come back and say give us a project so large and exciting that they justify a Capital Budget and then lets go fight for the Capital Budget. Sen. Warren thank you very much. I feel like im standing here pitching low and slow over the plate. Ims very pleased to hear your answers. We had a gaping hole in the nih budget. It is 12. 5 billion. We need a plan to fix it and if we want to dream big about what we can create, we need to get out here and fight for more funding for nih. I proposed a bill called the medical ovation act, which would increase nih funding by 20 without raising taxes and it doesnt even have to go off budget. If there are other ideas, people should put them on the table but it is time to get this done. I think it goes without saying that you and i have a fundamental disagreements in some areas but it is clear that one thing we agree on is what Congress Must do and i hope that we will be able to follow your example, double the funding for nih as you did in the 1990s come and bring home some of the promises of medical research in this country. Thank you. Sen. Cummings i went to thank you. I am hoping you will use your influence to help us achieve the things we need to achieve. I dont want something to go unnoticed. You talked about key people who played a significant role in making sure we had appropriate funding for research and particularly medical research. I opted say out of our pain comes our passion to do our purpose. The people you spoke about obviously had pain they experienced and were able to take it to the halls of congress and make a differencedifference. Then i thought about what you said about how important this research is. I had a Family Member 10 years ago who had a terminal type cancer, but it is now fine. Those are things that mean though much so much. The bank both of you let me thank both of you for your leadership. What you are doing is very important. Thank you very much. But let this be the start of a new alliance. But i would like our folks to step up for the second panel. We invite the second panel to take their place is. Places. Our first guest is the professor at the university of Maryland School of engineering. Dr. Wilson is a member of the National Advisory board of the national and appeared of health. And the board of health. Welcome. Back i am very proud to introduce an associate professor at Harvard Medicine School medical school. He direct the program on therapeutics and law. He earned his bachelors degree from harvard and his medical and law degree from the universe the of pennsylvania. University of pennsylvania. He is certified in medicine and. Welcome. We are very pleased to have you today. Thank you for lending your ex ortiz. X are teased. Expertise. I am honored to welcome our next guest. She completed her degree in new york. She is the author of the entrepreneurial state, which was included in the 2013 book of the year list issued by the financial times. If you can issue opening remarks, we will get started. Back thank you for the opportunity to be heard today to share my expertise. I have enabled this is in a Research Program with the support of the national ion foundation. I am in the process of working on technology from the nationals i am foundation and is mall science foundation. I think it would be informative to start by describing the academic career track will start as postdoc and then an assistant professor, on to an associate professor or, and after five years one may become a full professor. A significant amount of time is spent conduct thing research. We want to build a pipeline of student excited about research and graduate cool and collaboration graduate school and collaboration in several this up since. Disciplines. Professors are able to share their permission so it can be applied to solve useful problem and to motivate to dance to seek students to seek research career. This has helped us solve problems and develop technology that can be transformative and developing the next generation. This provides the basis that will benefit our children and grandchildren. There are alternative sources of report. Without Faith Research there is lied research. There is no research. It is as though as 9 . Low as 9 . This has had a significant negative impact on morale. Also on the peers who are saying these proposals. It has a negative impact. They are making career choice is. Choices. These are the people we should encourage because they are the drivers. They can find research job. However, many young scientist are heading to under a limit. Under employment. One of the first thank you will cut is your travel ajit. Budget. That does not allow you to send students to conference to get the job skills they need. There are no and intense encourage meant, and financials support to creative ways of thinking. While Government Support is shrinking in the u. S. , it is growing in europe and asia. This trend begs the question of where will the next big break throughs come from. I am sure you are aware of it listing student existing you didntstudents going into stem cell. It is the case that at the phd level our graduate consist of mostly foreign to dance, not american. Foreign students, not americans. This has a huge return. These are not necessarily for ourselves in the short term but our children and ran children. Grandchildren. I would like to address the translation. The research translated at my company was supported by multiple grants. Giving some talks, i got a lot of encouragement to do a company, and that became my foray into entrepreneurship. They have an active incubation program. It was of the utmost importance to me that the transfer program existed. The grant was a critical catalyst for beginning the effort to transform original research into a commercially viable solution. It enabled me to reach out to per active partners for evaluation. Perspective partners for valuation. It was critical in his tablet showing credibility establishing credibility. It allowed us to further x than the team expand the team. The government must continue to provide incentives to support new technologies, as these lead to ask ended employment expanded employment and improve in quality of life. They are doing well. The Funding Amount is from 500,000 to 550,000. Commercializing technology can take a lot of effort resources and time. In my case my given the code we were starting with, that was very expensive. We had to optimize the code to run fast or. Faster. It took a lot longer to do the test than we imagined. I want to point out they have developed a program, and the primary goal is to foster entrepreneurship for engineers and scientists to expand in the technology reported previously. This has shown to make a significant difference. They are fostering and egos to stem wrapping around these companies, and ecosystem wrapping around these companies. It helps them get to the next level. This program only it to sit for two or three years. Can i ask you to wrap up so we make sure we get everyone . This is the last part. On the entrepreneurship side the federal government is doing well. We have to start at the base. It is my pleasure to talk about transformative medicine. The holy grail is innovative drugs that have a groundbreaking affect. Patients have worried about a reduction. It is important to direct policy. There is controversy. The pharmaceutical industry has contended it leads to development of and while arguing nih goes to drug development. I want to focus on the valuable yet underrecognized roleplayed a public invest. I lead us ready to determine what they thought was the most led a study to determine what they thought was the most important drug. I then examine the development his three of these drugs. The full result of these are available, but one of the major recurring themes was conceptualizing an approach and even damaged trading proof of concept. And even demanding proof of concept. Researchers loan the gene and produced large quantities leading to the approval. The first effective treatment for a rare form of emea leukemia was the first successful. At set out to prove they could inhibit the malfunctioning enzyme. He and his colleagues identified the agent. It was synthesized many years ago. In 1984, sam broder Commission Companies for candidates. Broder and his colleague documented activities. Clinical trials were conducted. One variation is several concept first arose in University Setting and were followed up in industries that things. An example can be found in antidepressant. They invest to gated serotonin investigated serotonins role in depression. Around that same time, a Research Teams darted designing it. The transformative conditions were discovered at a variety of it did to ship. A variety of places. Industry collaborators provide support to move forward, but our findings do not support affirmative dickel industry pharmaceutical industry. Further support can be found in us torry behind recent drugs. Story behind recent drugs. They discovered drugs and conduct trials. The Senior Scientist formed a startup to develop drugs to treat a hepatitis see c virus. Many of the key drugs arose in government sponsored settings. Ownership under patent laws is generally reserved for product. This leads to misperception about the relative importance of the contribution of these products. One argument is postal often focus on providing greater incentives for drug producers by x pending patent extending patents. In contrast, reductions have threatened the sources did support most transformative drug innovation. I firmly believe these are powerful ways of producing transformative drugs in the future. This is subject to high costs and high risk may lead to new therapies that will raise concern about whether this could lead to socialization of risk. We should think of how the public can gain from this. As demonstrated by the significant role in creating trance fermentative drug, publicly funded hold great promise for drug development. Thank you. Thank you for inviting me. I must say this is one of the only topics economist agree about. Spending on r d has an important longterm effect. The main issue is how do we talk about this. We have a real problem. I want to focus on how it has influenced the way policymakers have read enabled been enabled to increase. Its not a coincidence i work at the university of sussex. It was one of the only place iss that confronted the notion the role is to fix market failures. We have heard a lot about research. It is fundamental for innovation. I was happy to see you say the word innovation. It has the in market shaping. We really do not have the word to talk about creation. The spillovers are ohio that it is hard to appropriate the return. The government has stepped in. If you look at places, what used theyou see is they are invest in research. If you know anything about Venture Capital, they are exit driven. That tends to happen through a buyout for an ipo. That is not going to get you the biotech revolution or the cleantech revolution people are hoping for. I want to focus on the inability to talk about this. Lots of youth aged these lots of these agencies have been mission oriented. They have a mission to nurture outofthebox thinking. How do we include mission . We dont. Beware of those tests. If you look at the big problems we have today, the cuts we are when thing in research, so the latest figure, it was peaking in the 60s. It has dropped in the 2000. Recently it has on up. It is increasingly focused on the thick research. Basic research. We have to remember the big successes come from nurturing linkages between basic and applied research. It looks like the private sector is leading up to that. That has been increasingly around research. They used to spend 35 on the are. It has fallen. It is narrow in scope. We have an increasing financial is asian of Companies Spending more on inks like share buybacks. When you had an active sector you had to ask why are they doing that. It actually came from a deal with government. Government says you can maintain your status as long as you reinvest in innovation. We really dont have that kind of deal make it. Dealmaking. Have allowed this narrative to become so pervasive. All the cool stuff is going to happen within business. The problem is that is historically correct. As long as we talk just about basic research, we miss the wider story. Let me start with the question about where innovation comes from. If we want to improve medical, we need to understand where it comes from. One analyst found that two thirds of the drugs stemmed from discoveries made from publicly funded research. You found most of our trance fermentative drug most of our trance formative drugs tra nsformative drugs are from research. A study found 91 of drug patent are owned by the drive it sector. Private sector. This suggests innovation comes straight from the Drug Companies. I want to understand this discrepancy of where innovation comes from. There are a number of different x the nation x the nations. Explanations. A lot of the key insights, which inspire a whole field of therapeutics are not necessarily patentable but a rise from decades of government funded research usually conducted in the academic center. Those key insight are not patentable, although the product are. Pharmaceutical companies do it one job do an excellent job and will patent changes and will build we did one study around the particular drug. A lot of the key innovation is not patentable. They pursue patent to excess. We did a study and found the small sliver of patent held by academic petition and government are much more important and had more impact on the field. Senator warren the federal government conducts research. They use that to develop new drugs. When they earn money, the tax payers do not necessarily reap the reward. Some Drug Companies argue the government recoups its investment. Do you believe the taxpayers are being adequately compensated . I think we could do a lot more to invest. When you look at pharmaceutical many of actors and how much they devote to research and development. The amount based then on research and advertising the amount they spend on research and development is far more. I think what we need to be doing is figuring out ways to take the enormous profit and filing them back in the enterprise that provided the studies that allow these profits to be made. Much of it was going in the opposite direction. There is a lot of talk about cutting Corporate Tax is for companies that can trace their product back to patents or other forms of intellectual property. I want to know what you think about this innovation tax cut. Would it increase investment in research . I think its important we remember what a patent is. A patent is a monopoly. The goal should not be to increase profit of companies. It should be to increase research. The evidence is they are not are a good at that because they are targeting the income generated. The tax credits and up being designed poorly. In holland they designed one that is in college and. Intelligent. I think we should remember, the act in 1980 allowed Public Research to be patented. They say, better make sure the taxpayer does not pay twice. They spend around arty one billion in research. 31 billion in research. The pricing mechanism it self could be one way the taxpayers could be rewarded. The government has never felt the confident precise and because of this narrative, with the idea your meddling and the market, where you created that market. This finance has shaped the industry but as soon as we talk about government having an influence on the price, we hear about government meddling. It would say we get more innovation if we plow more into basic research, not if we make these are the ways to big Drug Companies. It might increase time people golf. That could be tested. What drives innovation are the perceptions over future market opportunities. Were in buffett is good in this. We are talking about what drives those future opportunities. Were in Buffett Warren buffet is good in this. One more thing which is to ask about the act, which could boost the budget by about 20 by asking Drug Companies to put more of their profit into the nih. Could i ask you how the medical innovation act might of the pipeline of new product and the drug industry it self . I think its a good idea because it provides a substantial sum to the nih and the work to make sure drugs are evaluated and approved so we know they are safe before they can come on the market. Unfortunately, the amount of money pharmaceutical companies have made over false advertising has led to a substantial amount of money they could be