The discovery and marketing of countless therapeutic drugs and vaccines over the past century has undeniably helped to revolutionize the field of health care. Despite the scope of this progress and the benefits that have flowed from it, the pharmaceutical sector continues to be the target of numerous criticisms. How are innovative drugs discovered and developed? What do the public sector and the private sector each contribute to the process? The purpose of this Economic Note is to shed some light on these questions.

The role of the private sector in the field of health care.

The increased role of the private sector in the delivery of healthcare services.

The tendency for governments to regulate the advertising industry.

The tendency for governments to regulate the advertising industry.

Pharmaceutical research and the betterment of health conditions.

Pharmaceutical research and the betterment of health conditions.

Never before in the history of humanity has there been as rapid an increase in longevity as there was during the 20th century. In industrialized countries, life expectancy at birth has risen from an average of about 50 years in 1900 to a little over 80 years today. A growing number of people can now live not only longer but also healthier than ever before. Indeed, substantial gains in terms of quality-adjusted life expectancy have been recorded for decades in many countries.

How taxes on products deemed harmful do not necessarily have the desired effects.

The measures promoted by the anti-tobacco movement.