The pharmaceutical sector is involved in all phases of R&D, but it contributes the most to translating and applying knowledge to product development. Industry pays for the majority of the clinical trials required for market authorization. Research and development are one of the most significant aspects of the pharmaceutical industry. The pharmaceutical industry invests heavily on research and development. Higher drug prices can both cause and result in rising R&D expenses, as payer approval of higher pricing can make increasingly costly R&D and acquisitions of R&D projects financially viable. Increased R&D and acquisition expenditures might lead to price increases.