Harvard Business Review LogoApril 28, 2026Lu ShaoJi/Getty ImagesFor more than 50 years, U.S. academic medical centers (AMCs) have been the global engine for pharmaceutical innovation. These university-affiliated hospitals are dedicated to fulfilling the mission areas of medical education, scientific research, and patient care. They have developed a distinctive innovation model in which patient care inspires research questions, public investment supports discovery, and public-private partnerships enable the translation of these breakthroughs into clinical practice. But U.S. AMCs are now facing a major challenge from China, which has emerged as a major rival in the last decade. Its pharmaceuticals R&D sector is on track to become the global industry leader, displacing its U.S. counterpart.
U.S. Medical Centers Need a New Model for Drug Discovery and Development
U.S. academic medical centers risk losing leadership in drug discovery and development as global competition—especially from China—intensifies and their model struggles to translate breakthroughs into treatments. To respond, they must adopt a faster, more integrated approach: build industry-style development capabilities, embed AI and automation, form strategic partnerships, invest beyond early-stage research, and expand global collaboration. These shifts can help close execution gaps, accelerate clinical progress, and sustain their role in bringing new medicines to patients.
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