differentiation is endogenously determined by firms' strategic investments in product innovation. Consumers seek variety and product … innovation is more skill intensive than production. Stronger import competition increases innovation incentives, and thereby the …

Therapeutic reference pricing (TRP) of pharmaceuticals is widely thought to steer drug innovation incentives away from … innovation is to develop drugs with different degrees of differentiation from existing drugs within the same therapeutic class … innovation incentives. On the other hand, TRP leads to lower health benefits unless incentives for therapeutic differentiation …