Journal Club: Revisiting Eroom's Law
The a16z Show5 Jul 2020

Journal Club: Revisiting Eroom's Law

Eroom’s Law is Moore’s Law spelled backwards. It’s a term that was coined in a Nature Reviews Drug Discovery article by researchers at Sanford Bernstein and describes the exponential decrease in biopharma research and development efficiency between the 1950s and 2010. Whereas Moore’s describes technologies becoming exponentially faster and cheaper over time, Eroom’s Law describes the trend of drug development becoming exponentially more expensive over time.

The article describing Eroom’s Law was published in 2012, and analyzed data up till 2010. That is perhaps ironic as 2010 appears to be an inflection point in the trend. In Breaking Eroom’s Law, the authors analyze the data since 2010 and show that costs appear to have stabilized over the last ten years. But what has contributed to this critical and exciting trend shift? In our conversation, Jorge and Vijay discuss the three causes cited by the authors of the Breaking Eroom’s Law article, their views on what technologies and policies will continue to push costs down, and their opinion on whether Eroom’s Law is broken for good.

Stay Updated:

Find a16z on YouTube: YouTube

Find a16z on X

Find a16z on LinkedIn

Listen to the a16z Show on Spotify

Listen to the a16z Show on Apple Podcasts

Follow our host: https://twitter.com/eriktorenberg

Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.


Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Episoder(1000)

Building Blackstone, Backing Costco, with Tony James

Building Blackstone, Backing Costco, with Tony James

David Haber speaks with Tony James about building enduring firms across multiple eras of finance. From joining DLJ when it was a subscale firm to helping grow Blackstone into one of the largest asset ...

5 Mai 1h 23min

Sarah Rogers: Free Speech, AI Diplomacy, and What America Owes Its Allies

Sarah Rogers: Free Speech, AI Diplomacy, and What America Owes Its Allies

Katherine Boyle speaks with Sarah Rogers, Under Secretary for Public Diplomacy, about the intersection of AI, free speech, and global information systems. They discuss how major technological shifts, ...

4 Mai 24min

Balaji and Taylor Lorenz on AI and Media

Balaji and Taylor Lorenz on AI and Media

Theo Jaffee speaks with Balaji Srinivasan and Taylor Lorenz about how AI is reshaping media, trust, and online communication. Building on prior public disagreements between the two, the conversation r...

1 Mai 51min

Workday’s Last Workday? AI and the Future of Enterprise Software

Workday’s Last Workday? AI and the Future of Enterprise Software

Elena Burger speaks with Joe Schmidt, partner on the enterprise team at a16z, about the future of enterprise software in the age of AI. Using Workday as a case study, they discuss why many of today’s ...

30 Apr 29min

The Shift in Global Drug Development

The Shift in Global Drug Development

Theo Jaffee and Gabriel Dickinson speak with Cremieux about China’s rapid rise to the top of global clinical trial output. They discuss the regulatory reforms that accelerated China’s progress, the su...

29 Apr 57min

John and Patrick Collison on Stripe's Growth, Agent Commerce, and the Future of Software

John and Patrick Collison on Stripe's Growth, Agent Commerce, and the Future of Software

This interview with Stripe cofounders John and Patrick Collison originally aired on TBPN. They discuss Stripe's 34% growth and new employee tender offer, how agent commerce and stablecoins may require...

28 Apr 20min

Ben Horowitz on Venture Capital and AI

Ben Horowitz on Venture Capital and AI

Anjney Midha, founder of AMP PBC, speaks with Ben Horowitz, cofounder of a16z, about how venture capital changed from a small, relationship-driven business into a scalable system for backing new techn...

27 Apr 1h 9min

AI Inside the Enterprise

AI Inside the Enterprise

Steven Sinofsky, board partner at a16z, Aaron Levie, CEO of Box, and Martin Casado, general partner at a16z, discuss the reality of AI inside enterprises. They cover the gap between Silicon Valley and...

24 Apr 1h

Populært innen Business og økonomi

stopp-verden
lydartikler-fra-aftenposten
dine-penger-pengeradet
rss-penger-polser-og-politikk
e24-podden
rss-pa-konto
rss-borsmorgen-okonominyhetene
rss-skravla-gar
pengepodden-2
finansredaksjonen
pengesnakk
utbytte
morgenkaffen-med-finansavisen
rss-sunn-okonomi
lederpodden
stormkast-med-valebrokk-stordalen
okonomiamatorene
rss-politisk-preik
liberal-halvtime
livet-pa-veien-med-jan-erik-larssen