Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable ….4% lower due to the regulation, a 2.2% consumption equivalent welfare loss. Four-fifths of this loss is due to lower innovation … changes in the direction of R&D, and find that regulation's negative effects only matter for incremental innovation (as …

also characterized by extensive regulation of almost every activity, from product development through manufacturing and … the application of biotechnology to drug development as well as firms that specialize in low-cost production of off-patent … research and incentives for innovation. We then summarize the pricing and marketing of drugs in the US and several other …