Wirtschaftspolitik für wissensintensive Branchen am Beispiel der Pharmaindustrie

Abstract Against the background of decreasing competitiveness of German pharmaceutical firms, we analyze the impact of institutional framework conditions on the performance of research-based pharmaceutical enterprises. Reviewing the literature, we find ample empirical evidence that both strict price regulation and a rigorous drug approval process lower the expected returns of new drug introductions and therefore reduce the incentives of R&D investments. A reliable patent system on the other hand constitutes a regulatory measure that enhances firm R&D investments and thereby generates a positive economic impact.