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In 2010 the research-based pharmaceutical industry invested an estimated  ? 27,000 million in R&D in Europe. It directly employs 640,000 people and generates three to four times more employment indirectly – upstream and downstream – than it doesdirecty.  However, the sector faces real challenges. Besides the  additional regulatory hurdles and escalating R&D costs, the sector has been severely hit by the impact of fiscal austerity measures introduced by governments across much of Europe in 2010 and in 2011.