To examine the drivers of innovation, this paper studies the global R&D effort to fight the deadliest diseases and presents four results. We find: (1) global pharmaceutical R&D activity - measured by clinical trials - typically follows the 'law of diminishing efforts': i.e. the elasticity of R&D...

To examine the drivers of innovation, this paper studies the global R and D effort to fight the deadliest diseases and presents four results. We find: (1) global pharmaceutical R and D activity-measured by clinical trials-typically follows the 'law of diminishing effort': id est the elasticity...

Policy makers use reference pricing to curb pharmaceutical expenditures by reducing coverage of expensive branded drugs. In a theoretical analysis we show that the net effect of reference pricing is generally ambiguous when accounting for entry by generic producers. Reference pricing shifts...

Do political statements without a scientific basis on medicines cause global pharmaceutical demand spillovers during pandemics? We examine this question using novel sales data from 2018-2020 in the Indian domestic anti-malarial drug markets. Our context is the President of the United States...

In response to the epidemic of prescription-drug abuse, now 49 US states have passed legislation to establish Prescription Drug Monitoring Programs (PDMPs). These programs track controlled-substance prescribing and usage behavior in an effort to improve patient outcomes and identify and preempt...

After the Supreme Court's gift of blanket immunity to generic drug manufacturers, these companies are dancing on the graves of their victims. In fact, one generic pharmaceutical defendant in a recent pre-trial motion actually alleged that “federal law allows it to ‘[keep] quiet its knowledge...

Advances in artificial intelligence (AI) could potentially reduce the complexities and costs in drug discovery. Using a resource-based view, we conceptualize an AI innovation capability that gauges a firm's ability to develop, manage and utilize AI resources for innovation. Using patents and job...

We evaluate the impact of a price cap regulation implemented in the Colombian pharmaceutical market between 2011 and 2014. To do so, we take advantage of a unique data set where we observe three sources of variation: i) differences across eighteen groups in the Anatomical Therapeutic Chemical...