This paper investigates the effect of (potential) market size on entry of new drugs and pharmaceutical innovation. Focusing on exogenous changes driven by U.S. demographic trends, we find that a 1 percent increase in the potential market size for a drug category leads to a 4 to 6 percent...

This study analyses 1400 research projects of the top 20 R&D-spending pharmaceuticals to identify the determinants of successful research projects. We provide clear evidence that externally sourced projects and projects involving biotechnologies perform better than internal projects and chemical...

Our study puts special attention to the fact that R&D cooperations in the pharmaceutical industry are formed at different stages throughout the drug development process. We study if the timing to engage in R&D cooperations in the pharmaceutical industry has different impacts on the technology...

The Covid-19 pandemic tragically emphasized severe failures of health systems. In particular, the saturation of hospital infrastructures and the lack of medical devices is crucial for respiratory ventilators. The medical and pharmaceutical sectors had to find urgently new ways to innovate...

This paper empirically examines the influence of the determinants of R&D expenditure, such as firm's lagged profitability, R&D intensity, and cash flow on R&D expenditure of the pharmaceutical companies. All of them have an important roles in determining the steps of the corporate strategy to...

This paper examines the idea that the USA has outshined Europe in the race for new medicines as a result of a flight of business R&D expenditure to the USA. It adopts a methodology that accounts for R&D price inflation, considers the role of both ‘performed' R&D and ‘extra-mural' R&D, and...

Lanjouw and Schankerman (2004) proposed that patent quality is a key driver of R&D productivity but did not find supportive evidence for pharmaceuticals. This study revisits this hypothesis using OECD data for the period 1980-2000. It extends the literature in three ways: it develops new R&D...

In the last ten years, the pharmaceutical industry has experienced steep, unprecedented price increases. Pharmaceutical companies engage in R&D cooperations to cope with rocketing research and development (R&D) expenses.We study the impact of R&D cooperations on firms' research activities and...

This paper uses data on transactions in the pharmaceutical industry to examine the demand-side of technology outsourcing. By integrating a transaction-cost economics perspective with the analysis of internal Ramp;D capabilities, we find that firms with relatively more cospecialized complementary...

The patent laws of many countries have ''research exemption'' provisions that exempt certain research-related uses of proprietary materials from patent infringement. By limiting the rights of existing patent holders, such rules are meant to facilitate follow-on innovation and benefit latecomer...