opportunities. The paper also provides new evidence on induced pharmaceutical innovation. In both cases we use the change in the … demographic structure of the market (measured by age structure and obesity prevalence) to test the induced innovation hypothesis … pharmaceutical innovation responds to aging- and obesity-induced changes in potential market size …

impact by serving as a new general-purpose “method of invention” that can reshape the nature of the innovation process and … stimulating research productivity and innovation-oriented competition going forward …

an induced innovation externality. This alternative mechanism, by contrast, causes people to devote an inefficiently high … level of self-protection. As an empirical example of this externality, we analyze the innovation induced by the obesity … epidemic. Obesity is associated with an increase in the incidence of many diseases. The induced innovation hypothesis is that …

innovation infrastructure (cross-cutting factors which contribute broadly to innovativeness throughout the economy), the … environment for innovation in its leading industrial clusters, and the strength of linkages between these two areas. We use this …

from pharmaceutical innovation. Extending previous studies of the welfare benefits from innovation (Trajtenberg, 1990 …

segmentation) shaped the underlying incen- tives for innovation in the PC industry during the mid to late 1980s …