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...

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 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...

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...

Within the last decades, there have been many technological and regulatory changes in the pharmaceutical industry. Some of these developments facilitate the innovative activities of large firms, while others foster small firms. It is therefore surprising that the implications of these changes in...

Policy makers need reliable estimates of direct costs of pharmaceutical R&D, in order to contain health-care costs and at the same time maintain a supportive environment for investment in research. This paper evaluates the application of parametric estimating methods to the late stage clinical...

Drug recalls, contamination events, and shortages are on the rise, but drug companies still rely on decades-old manufacturing plants and processes. Contrary to widespread perceptions, drug manufacturing is typically expensive, inefficient, and non-innovative. Drug companies spend much more on...