Analyzes the costs, risks, & economic rewards of pharmaceutical R&D & the impact of public policy on both costs & returns. Examines the rapid increase in pharmaceutical R&D that began in the 1980s in the light of trends in science, technology, drug discovery, & health insurance coverage; Government regulation; product liability; market competition; Federal tax policy; & Federal support of prescription drug research. 12 appendices, including a glossary of terms.