Research by a UC-Berkeley economics professor said that two methodologies used in a 2004 study inflated estimates of the expected royalty returns from state-funded stem cell research, Capitol Weekly reports.
Richard Gilbert, the professor, said research funded through the California Institute for Regenerative Medicine is likely to generate between $31 million and $62 million in royalties.
Gilbert's estimate, published in June 2006, contrasts with a September 2004 report that estimates the state would receive between $537 million and $1.1 billion in royalty returns. The 2004 report was written by Laurence Baker, an associate professor at Stanford University School of Medicine, and Bruce Deal, managing partner of a consulting firm (Maclachlan, Capitol Weekly, 1/23).
California voters in November 2004 approved Proposition 71 to create the CIRM and provide $3 billion in taxpayer funding over 10 years for stem cell research (California Healthline, 1/10).
Gilbert said methodology used in the 2004 study does not accurately project the number of viable new therapies that the state-funded research will create. He also said that the 2004 study should have considered possible returns on other investment opportunities for the $3 billion (Capitol Weekly, 1/23).