When you look at pharmaceutical many of actors and how much they devote to research and development. The amount based then on research and advertising the amount they spend on research and development is far more. I think what we need to be doing is figuring out ways to take the enormous profit and filing them back in the enterprise that provided the studies that allow these profits to be made. Much of it was going in the opposite direction. There is a lot of talk about cutting Corporate Tax is for companies that can trace their product back to patents or other forms of intellectual property. I want to know what you think about this innovation tax cut. Would it increase investment in research . I think its important we remember what a patent is. A patent is a monopoly. The goal should not be to increase profit of companies. It should be to increase research. The evidence is they are not are a good at that because they are targeting the income generated. The tax credits and up being designed poorly. In holland they designed one that is in college and. Intelligent. I think we should remember, the act in 1980 allowed Public Research to be patented. They say, better make sure the taxpayer does not pay twice. They spend around arty one billion in research. 31 billion in research. The pricing mechanism it self could be one way the taxpayers could be rewarded. The government has never felt the confident precise and because of this narrative, with the idea your meddling and the market, where you created that market. This finance has shaped the industry but as soon as we talk about government having an influence on the price, we hear about government meddling. It would say we get more innovation if we plow more into basic research, not if we make these are the ways to big Drug Companies. It might increase time people golf. That could be tested. What drives innovation are the perceptions over future market opportunities. Were in buffett is good in this. We are talking about what drives those future opportunities. Were in Buffett Warren buffet is good in this. One more thing which is to ask about the act, which could boost the budget by about 20 by asking Drug Companies to put more of their profit into the nih. Could i ask you how the medical innovation act might of the pipeline of new product and the drug industry it self . I think its a good idea because it provides a substantial sum to the nih and the work to make sure drugs are evaluated and approved so we know they are safe before they can come on the market. Unfortunately, the amount of money pharmaceutical companies have made over false advertising has led to a substantial amount of money they could be contributing through this medical innovation act. Thank you very much. Its weird new drugs are built on a foundation of taxpayer support in basic research. Its clear new drug are built on a foundation of taxpayer support in basic research. It is time for lawmakers to put their money where their mouth is. I think the medical innovation act is one way it will get back on track. The journey certainly involves many gaps. Some of the most, sing once have not succeeded in making it. Is that right . For that reason, it is my under his ending it is often called the valley of death. You are in the process of taking Software Tech knowledge he you develop technology you developed. You received several Small Business grants from the National Science foundation. How important are those across the socalled valley of death . Dr. Wilson i hope we have crossed it. Critical. I would not have started the company if those did not eggs this. Exist. Being a professor, i know how to write proposals. I will add the university of maryland has been very supportive to forming companies and has developed a lot of programs. One i joined where you have people who have been entrepreneurs several times. They are there to it lies you to write a Business Plan and help you think like a business person. Faxed that goes to that goes efficientcy of what you are doing. Sometimes you have people trying to reinvent thate wheel, and they dont know how to do it. That is the goal of the i Corps Program being developed. I wasnt able to take advantage of that program but one of the main things they have, people who are entrepreneurs do is to test the market. And understand what the market needs. Often we develop technology only to find there is nobody who want that take knowledge he. Technology. Backs how efficient are they at hitting that to market . It depends. If you can get enough revenue in early. It is going to take it could durable amount of time to get that kind of traction. Then you need Venture Capital. Facts you talked about you talked about how younger people cannot get grant to do research. They often become under employed. Senator warren and i have in looking at this middleclass prosperity situation. We talked about people being saddled with debt. Then we have a situation where if they dont have opportunities, they dont have a job to even pay the debt. I havent even gotten to the feeling of hope was this hopelessness and wasted possibilities that we could be giving this to the world. We have a lot of young people who want to do great things, but unless we open these doors, this allows us to create jobs. That is very effective. Do you see young people becoming discouraged . Definitely. Even the young scientist who are able to apply through nih. The young ones are heard the most hurt the most. When you are sitting there, you know what they are capable of. They get favored because they dont have a proven track record. We are cutting off the pipeline. They try to make efforts to give special attention to young investigators, but there ares bill a lot of them without support. Still a lot of them without support. In your book, the u. S. Has one of the most interventionist governments when it comes to innovation. If the government no longer plays a role, is there any other force capable of taking what president kennedy called National Commitment of manpower or facilities to solve our greatest challenges . No. The point is it has always been an important interaction fundamental to creating the kinds of innovations that have in fundamental. That have been fundamental. We have less confident for agencies to talk about it. They themselves are becoming short term. In some ways what they were able to do is act like a fundamental fund. This is not about communism. This is how to get capitalist invest. We havent allowed them to do what a normal Venture Capitalist can do, which is to welcome failure. When you try to innovate, you will fail and fail again. They have the ability to reap some of the reward to count for the downside. The lack of ability to admit we are a Venture Capital fund has not allowed them to think about how to create a revolving fund. You think about the guaranteed loans. It was a great story. Government should just do background leveling the Playing Field condition whereas everything about the iphone was actually picked by different government institutions for finance. If we admit that. We should start gig more concretely thinking more concretely to do these investments again and again. They have to talk about whether it is bringing money to do these it ferment again and again. Experiments again and again. It was continuing to make doubledigit increases in research and development budget. If the rate of Growth Continues china could surpass the u. S. In total r d spending by 2022. Is china trying to emulate the model we use in the u. S. And trying to entice resources to leave the United States . Ask china has an in edible ability to adapt. Wet china has an incredible china has an incredible ability to adapt. The technology is mainly around green. They are increasing massively r d at ended chores, expenditures, but what is interesting is those countries are able to see it as an opportunity. Denmark is the number one provider of hightech service the green economy. They themselves have enabled to engage with china in an interesting way that these this as an opportunity. What be what would be transformational is to actually ask how they can benefit from this massive increase in spending, because they are potentially supplying a demandside whole, not just the supply side push. That is an important point which is all of the revolution in the u. S. Required a demandside technology. Demandside policy is around things like suburbanization. China is thinking about using green as the new direction, also for the vip revolution. You are not just spending on r d and hightech areas. You are thinking about the deployment of the new innovation across the economy. Green becomes an interesting direction. Senator warren i think this makes it clear to create real innovation we need or invest meant in basic research. Congress is focused in bed on lowering standards for approval so companies can get their product on the market faster. The industry argues companies are not getting drugs fast enough. I think this is a dangerous case. Can you tell us about the authority the fda always already has two speed drugs to market and if they are using that authority . Back sure, there are a number of pathways to provide access to important new drugs treating conditions or meeting need. There are five different pathways the intent of trying to speed new cares to market. Last your two thirds of the drug were approved via these accelerated pathways. Not only does the fda have these in place, but they are using them quite liberally. If you look at the statistics, a lot of new drugs are approved with the basis of treating biomarkers or other. In point. Most new drugs are approved on the basis of studies of month or less x month or less. Six months or less. There is an arduous process for approving new drugs. It is quite the. Quite the opposite. Lowering standards may make Drug Companies profitable, but it is not going to make innovative. If them of the proposals would allow drugmakers to advertise and promote uses that are not approved why the fda that have only an initial cynical evidence they might work like a case study or a small trial. As an expert, can you ask late how innovation and safety would be affected if these proposals were passed into law . Ask these are very dangerous for public health. They would allow companies to get drugs approved on the basis of a limited application and promote them for condition where they may be an safe because her has not been any test thing. There has not been any testing. Customers want treatments that work and are safe area and a do not just want innovation for the sake of innovation. Companies his directly companies historically wont do them. You are not going to get the kind of test and we need to guide patient looking for these drugs. We wouldnt know how to use them. We would be dumping tons of resources into these, when we could the testing them first to make sure they work and using them appropriately. The fda is the gold standard. It has attacked did this tasty of american and ensured the drug are affect him. It certainly wouldnt keep us any day for. If we are serious any safer. If we are serious we need to make a real commitment of real dollars. Thank you very much. Between july 25 teen and june 2015 and june 2014 the drugs more than doubled in price. Are you aware of this . Back yet. There is one generic rug drugs that can reverse the effect of a heroine overdose in just 15 minutes. It has become important for workers. Heroine overdose is have more than put drupal. Yet the company that makes it is increasing. Yet the company that takes it is increasing by more than 15 . Where i live, the cost more than doubled in less than one year. Are you aware of this . The only explanation seems to be this Company Season in these and is increasing prices. This bill would require them to pay rebates to state and Medicaid Programs when prices increase faster than inflation. Brandname drugs. My bill would extend this aim requirements to generic drugs so they are treated equally. The Budget Office estimates the change would save taxpayers 1 billion. Do you think this makes sense . Ask absolutely. I think its great we are talking about generic rugs. Drugs. What really drives innovation is when the Market Exclusivity pe riod ends. It forces them to pursue the next great thing. It seems there is a major market failure and being able to provide these for reasonable price is. Prices. We Pay Attention to these cases. I think your bill is a good cap in the right direction. I think there are lots of things to be done to try to promote innovation and brandname and generic drugs. A lot of people dont realize this but there are hospitals. Over 90 of all hospitals suffer from drug shortages. A lot of this is folks are hoarding drug and jacking up the price. It is happening over and over again and reading situations where hospitals cannot get first rate drugs. Are you aware as to mark x i am. Are you aware of this . X i am. This is a problem, making sure there is a vibrant generic drug market and policies that can ensure these shortages are addressed in a timely fashion. They can use attention to resources. Going back to this project we are trying to figure out how do they keep more of their paychecks. They are paying more and not getting paid more. They see the paycheck they are getting shrinking. They are trying to make ends meet and cannot be a future for their children. It is amazing all of this comes together and every asked back is hitting the middle class over and over again. People are tired. Many are throwing up their hands to figure out what we can do to make it better. Senator warren i want to thank you for being here today area i think the key message here today has been that innovation is built on federally funded research. Speaker gingrich we were delighted for him to talk about how he doubled the n. I. H. Budget. He said his only mistake was that he did triple budget. But since then we have headed in the wrong direction and cut and cut support for basic research and this is a matter of the ultimate success of americas middle class. We theed to support that research because we need to support good jobs here in america. We need to support that research because we need to make sure that america doesnt go to bankrupt trying to deal with the problems of the future. Congressman comings thank you all. Its interesting when president obama was in kenya, i sat up at 5 oclock in the morning and watched his speech. One of the things he said is one of my favorite quotes he said we do not inherent what we have its mainly our environment and opportunities from our ancestors we borrow them from our children. We borrow them. The question is what are we going to provide for our children . And when you look at research, making sure that people have the best medical care, making sure that we take advantage of innovation and make sure we open the door for jobs, good jobs, jobs here in the United States that have impact all over the world, its all connected. Its all connected to what were trying to do here today. You all have contributed greatly to our discussion. Were going to take what you said and use it in every way we can. Well probably be calling on you again trying to get your advice seeking your advice because we want the best minds and we have them sitting in front of us. We also of course thank speaker gingrich for his contributions and thank you very much as we march forward trying to make a difference. My mom used to say in my time and in my space i will make a difference with gods grace. Thank you very much. Thank you. Heres whats happening on cspan tonight. First the state Department Releases a report evaluating 188 nations on their efforts to combat Human Trafficking and the democratic senator responds to what he calls the politicization of the human traffic report. And panel of undocumented immigrants and activists talk about the handling of immigration laws in arizona. After that a Democratic Forum on strengthening Scientific Research as a way to help curve the economy and create jobs. This weekend cspan citys tour krafls across the country with time warner cable. To learn more of election is ton kentucky. A state hero who had a tumultuous political career. In the mid 19 forties if you had asked who is a bright shinning star in american politics on a National Scale someone who will be senator, perhaps president , they would have said ed pritchard of kentucky. He was one of those people who worked in the white house when he was in the early twenties and seemed destined for great things and then came back to kentucky in the mid 19 forties. We also visit ashland. The mansion at ashland is a unique situation. Clays original home had to be torn down and rebuilt. It fell into disrepair and his son found it could not be saved. What we have is a home that is essentially a five part federal style home as henry clay had with italian details and architectural details and added layer of aesthetic details added by the granddaughter and great granddaughter and so on. See all the programs from lexington today at 6 30 eastern and sunday afternoon at two on American History tv on cspan3. State department removed cuba and malaysia from the Human Trafficking blacklist. This removes potential barrier from malaysia to join the pact and cuba gets the upgrade for the First Time Since 2003. An estimated 20 Million People worldwide are working under illegal conditions. Heres secretary of state kerry speaking about the report. If my doctor sees that im in serious trouble. Not the first to do that. But i couldnt resist. I really can think of no better way to start this week than with such a gathering of really remarkable people, all of whom are determined to make a difference in a cause that really counts. Im very, very honored to be here particularly happy to see from capitol hill my friend and former colleague senator and chris smith who has been such a long time champion in these issues. Both of them are two champions in this fight. Delighted to see the first ladys chief of staff. Thank you for being with us. And also i want to recognize quickly jeff zucker, the head of cnn. Cnn made a special cause of this. I see their accountability reports as i travel around the world and very appreciative to cnn for their commitment to this cause. Thank you all of you. There are members of the diplomatic core here and that is absolutely vital to us because International Cooperation is the key to our being able to have an impact and make progress and we are. There are leaders from Civil Society here and they are all of them bolstering the networks that are being built around the world to try to fight back, increasing creating sophisticated strategies and thats the only way well succeed in this battle. Its a battle against money. Its a battle against evil and quite remarkable that in the year 2015 we face a modern version of slavery, something we actually fought a civil war over here. It is vital for us to be able to push back against this and particularly grateful to the entire trafficking person team who stood up a few moments ago and grateful to Kerry Johnstone who has been the acting director and who has overall supervisory task. Its brought together by every division and every office and mission of the entire state department. This report is the product of really an entire year long effort. These folks will leave here today and next our next years report and it is a constant process of following up with the employees around the world, gathering facts, information and helping to lay it out. In this report is important because it really is one of the best means that we have as individuals to speak up for adults and children who lack any effective platform whatsoever through which they are able to speak for themselves. Because of its credibility, this report is also a source of validation and inspiration to activists on every single continent who are striving to end this scourge of modern slavery. I want to emphasize like we did last month when we issued a report on our human rights observations. The purpose of this document is ton scold and not to name and shame. It is to enlighten and energize and most importantly to empower people by issuing it we want to bring to the publics attention the full nature and scope of a 150 billion Illicit Trafficking industry and it is an industry. Pick up todays New York Times front page story about a young cam bodian boy and finds himself held by armed men and pressed into service on the seas. Shackled by his neck to the boat so that he cant escape and take off when theyre around other boats. We want to present evidence and facts that help people to alleviate suffering and hold people accountable. We want to provide a strong incentive for governments at every level to do all they can to prosecute trafficking. In conveying these messages let me acknowledge here in the United States we americans need to listen and improve. We need to do a better job of protecting those who live in our own borders whose passports are taken away from them. This morning were honored to welcome as is our tradition eight truly remarkable human beings. Eight people who have distinguished themselves in the quest to stop trafficking. I might add that where they live and many of these people do so at great personal risk. These men and women journeyed as far away as africa, baltics south america and europe to be with us today. Theyre kourcourageous individuals to secure victims to enhance Legal Protections for the vulnerable to educate the public and to expose theand end the practice of child sex tourism. My friends thank you for being here and thank you for reinforce what these heros are doing. If there is a single them that connects the work it is the conviction there is nothing inevitable about trafficking in human beings. Its a choice. That conviction is where the process of change really begins. Withl realization just because a certain abuse has taken place in the past doesnt mean that we have to tolerate that abuse in the future. Or that we can afford to avert our eyes and pretend we dont know whats going on. Instead we need to each be asking ourselves what if that victim of trafficking or somebody we knew what if it was a neighbor or still worse as a might nightmare what if it was a son or daughter or relative. The more we ask these questions the more each of us will understand not only is this a fight we have to attempt, not only do we have a responsibility to bring every aspect of our institutions of our government together in order to push back and educate and make people aware of this, but its a fight we absolutely have to win. It is a modern day human rights challenge of enormous proportions. We always need to draw strength from the fact that momentum in human rights work is a very powerful force. When criminals in one city are arrested for using children in the commercial sex trade, believe me, the pressure on authorities in nearby cities to make arrests builds. When counties becomes known for its success of putting traffickers in jail the leaders in country b are drawn into a virtuous competition. When the practice of using forced labor to catch fish to process meat and sell clothing, to assemble clothes then authorities will look at other industries and consumers will then have cause to question the origins of the Global Supply chains of what they have chosen to buy. And what is placed before them in stores or not line. I dont have have to tell this audience traffickers are ruthless and relentless. They know how to exploit the hopes of those desperate to escape poverty. Traffickers pray on the most vulnerable and target the weak and tisdespairing and isolated and make false promises and transport their victims across borders to labor without passports or phones and places where the language is unknown and where there are no means of escape. If the victims rebel or become ill, the traffickers often use violence to ensure their profits continue and their crimes are concealed. That is why this tip report needs to be read as a call to action. Governments need to strengthen and enforce the laws that they have on the books and prosecutors must take pride in turning todays traffickers into tomorrows prisoners. The private sector also needs to be a part of this effort by blowing the whistle on companies that use labor that is underage underpaid and undercoercion. Investigative journalists can continue to assist by shinning a spotlight as the New York Times cnn and others recently have on abuses in the seafood and other industries. Advocacy groups and faith groups and faith leaders and educators and researchers should continue to intensify the pressure for bold action so that together well win more battles in the fight that will surely last for some time to come. Throughout we have to be true to the principal although money may be used for many things, we must never, ever allow a price tag to be attached to the heart and soul and freedom of a fellow human being. A few years ago i guess actually the truth be told 40 years ago when i was a prosecutor in boston i launched one of our countries violence against womens divisions in the das office. We prs cuted a man for raping a woman who was a prostitute a case that no one thought we could win but we did because no means no. Against will means against will and in those situations force is never acceptable. Today as secretary of state im deeply inspired to push back against the bullies and the exploiters. Im inspired by the leadership weve seen from our commander in chief and from congress and from Civil Society and from the religious community and from our many overseas partners. I welcome president obamas nomination of assistant u. S. Attorney to serve as the next director of the tip office with the rank of ambassador at large. And im inspired by the efforts of our own diplomats and staff and especially the dedicated and tireless team over here who i ask now i ask her if you could come up here and join me so that we can honor individually and collectively the trafficking heros we have among us this morning. Robert menendez criticized what he calls the politicization of the Human Trafficking report. He came to the senate floor for about 15 minutes. Mr. President i arrive because i am deeply and profoundly disappointed in this years trafficking and persons report that was released today. By up tkpraeudgrading malaysia and cuba which were at tier three, which was the tier than any country could be considered at the administration turned its back to the victims and turned a blind eye and politicized the report. They ignored the calls from congress and the human righting a sroe cats and realities on the ground in cuba and officials themselves to preserve the integrity. They succeeded in elevating Political Goals above the most fundamental principals of basic human rights. I heard secretary kerry in his presentation of the report Say Something to the extent we should not put a price on our fellow human beings freedom. Well, it seems we have in this case. Ashrbitrarily upgrading them giving an undeserved stamp of approval who have failed to take the basic actions that would upgrade it. In malaysia the Legal Profession and human rights activists have urged the United States to support their efforts and maintain the tier three ranking they tell us malaysia deserves. Today, mr. President , we have failed them. In cuba, adults and children are subjected to sex trafficking and the government continues perpetrating abusive practices of forced labor. The administrations decision to upgrade cuba defies common sense. In the state departments own words, cuba is a source country where adults and children are subjected to sex trafficking and forced labor. In the case of forced labor, the regime itself is the single greatest perpetrator of forced labor in cuba. Every year the cuban government courses tens of thousands of its own doctors and medical professionals to serve in Foreign Missions under conditions that violate international norm. The regime restricts the movement of their doctors and takes their passports from them and prevents family business. The cuban government garnishes their doctors wages by more than 70 using what should be a human mission. This gross violation of standards is so bad that the United States has a specific Parole Program for cuban doctors that has been subjected to forced Labor Conditions. We have our own special Parole Program for cuban doctors that have been subjected to forced Labor Conditions and thousands of cuban doctors have come to the United States as a result. So at a time when these doctors are being received in the United States on humanitarian parole well turn a blind eye to the fact that the castro regime is the sole responsible actor. This raises one question. Is this yet another emerging detail of something the administration and cuban government have been discussing and another command that the regime had to agree in the name of normalizing the relations . Were willing to look the other way on human rights in order to normalize relations . As the state departments own department recognizes there has been no progress on forced labor in cuba. Any upgrade of the countrys ranking challenges common sense. I intend to use all the tools of my disposal from hearings to a call for investigations to legislations to challenge these upgrades. The United States commitment and credibility in finding the scourge of modern slavery is on the line. We spent an enormous amount of time on the legislation the senator had along with others on modern day slavery. Spent a lot of time on it. So we need to make clear that the trafficking in persons report must not be subject to political manipulation. Im utterly dismayed at the administrations decision to upgrade malaysia and cuba under these circumstances. It represents a bastardization and calls into question the trafficking and persons reports credibility and takes away the power to incentivize real progress. The upgrade compromises American Values in the interest of promoting a trade agenda with a country that consistently failed to uphold human rights. One can only characterize this action to get around the clear intent of congress with no regard for the effect on a key measurement tool of a countrys Human Trafficking record. Not only represents the latest release of the trafficking and persons report in the history of its publication. Nearly a full two months overdue, but calls into consideration this administrations commitment to oppose human rights. We all know that the malaysian government has not undertaken a consistent serious effort that would warrant an upgrade. As ive noted before on other occasions on april 17th of this year this year, the United States ambassador to malaysia, our ambassador, said that the malaysian government needs to show greater will, political will in prosecuting human traffickers and protecting to improve on its current lowest ranking in the report. This is the person on the ground in malaysia representing the United States government who has an eyes on whats happening. And he said on april 17th, that in fact the malaysian government needs to show greater political will in prosecuting human traffickers and protecting their victims if the country wanted to rise from tier three to a better tier two standing. On june 1st ann richard reaffirmed this years report covers up to march 15th which means malaysias handling of the refugee crisis will only be reflected in the 2016 report, next year. According to the assistant secretary then actions taken after march of this year, good or bad, should certainly not be reflected in this years evaluation. Well if youre not going to reflect the mass graves of muslims and what the government of malaysia did or did not do, the holding pens of humans, because it came after the reporting period, then you cant claim that the governments action to pass a law that has no teeth, no enforcement and that hasnt even been put into effect after the date, the same date you say you cannot consider the plight of hundreds who lost their lives, then you cant consider the passage of a hollow bill. It doesnt work both ways mr. President. Even the malaysian bar, the Nations Association of Legal Professionals stated in the letter last week, if there is any lesson to be learned from recent experience, it must be that the government has an excellent record of drafting written plans. But a less than satisfactory record of implementing them. The upgrade of malaysia if it were to occur would be premature and undeserved. The fact is by the trafficking and persons reports own admission, the phamalaysian has only three human rights con convictions. A two thirds decrease from the last report. Compared to the last trafficking and persons report they had a two thirds decrease in their convictions of the human rights abusers abusers. Yet they get an upgrade. Wow, thats a short fire way that is a surefire way to send a message across the world. It is beyond common sense. There can be no more compelling statement van we have lowered than we have lowered the bar on Human Trafficking. Of recent months have clearly shown that the malaysian government has not even begun to adequately address their human being trafficking problem. Thousands of victims continue to be exploited through tex trafficking and force through sex trafficking and forced labor. And it