It stinks, I agree. What economic/social arrangement has done a better job in drug innovation?

Has there ever been made an effort with any other approach/arrangement, in modern times?

Any sources on this, anyone?

Publicly-funded research universities, along with the March of Dimes, funded the polio vaccine, which has almost entirely eliminated the disease, and was not patented.

I think so. Funding research is difficult as it is, and the potential to leverage that spending to create jobs and tax income is important. It certainly helps that it concerns an highly qualified academic workforce. Most universities tend to keep people employed just to expedite the process.