2 ms·
> Marketing and R&D are not pieces of a fixed pie. Marketing spend grows the entire pie and provides additional dollars for the company to spend on R&D. You're
by hwillis 8y ago
> Marketing and R&D are not pieces of a fixed pie. Marketing spend grows the entire pie and provides additional dollars for the company to spend on R&D.
You're talking like marketing extracts money from the ground as if it's a raw resource. If 10x as much is spent on marketing as RD then the money spent on pharmaceuticals is <10% going to RD. That's not good for the consumer. It would be good if marketing was regulated and that pharmaceuticals were forced to compete by spending money on RD and making better drugs.
- nostromo 8y agoIt doesn't matter how much gets spent on marketing in relative terms. If it were 99% of the budget, but R&D was larger in absolute dollars, then that'd be a net positive. Marketing increases revenue. A portion of revenue goes to R&D. Ergo, more marketing means more revenue available for R&D.