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Evidence that if the profits of new drug drops significantly that the money spent on R&D on those new drugs will also drop? Imagine the government decides to t
by JamesBarney 8y ago
Evidence that if the profits of new drug drops significantly that the money spent on R&D on those new drugs will also drop?
Imagine the government decides to tax 80% of all revenue from all technology companies forever. Do you think funding for startups would increase, stay the same, or drop?
The obvious answer is drop, but what type of evidence would you expect to support this statement. A study of people taxing technology companies @ 80%? Or are you arguing with the premise that investment rates are correlated with profitability?
- rndgermandude 8y agoWorst straw man I saw in a long while. PS: >The obvious answer is drop No. You "feel" it is "right" and "obvious" even, and it might as well be if we really did that experiment, but humans are pretty bad at predictions.
- JamesBarney 8y agoWhat is your argument that it wouldn't affect R&D spending?
- rndgermandude 8y agoOne scenario that might happen is that the increased competition might lead to more R&D spending as companies might try to make up for the "lost" profits of their current portfolio by bringing new (patented) drugs to market. The idea that competition leads to innovation is not exactly new.
- JamesBarney 8y agoWhy would a decrease in price drive an increase in competition?