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Answer to Question #49723 in Economics of Enterprise for Obinna
Question #49723
Why are new surgical techniques developed with public funds whereas pharmaceutical research and development is conducted privately by for-profit firms?
Expert's answer
New surgical techniques are developed with public funds, because it needs high costs to be developed and then not gives high profits, because such techniques will be used by other. Whereas pharmaceutical research and development is conducted privately by for-profit firms, because there is a good possibility to earn high profits, when they develop and patent some new medicines.
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