This paper looks into various means of regulating pharmaceuticals and their effects on the structure of the international pharmaceutical industry. Regulation adds complexity to the activities of a firm. This complexity is multiplied, if different countries apply different sets of regulations....

In any assessment of the R&D capabilities of Indian companies, their patent holdings would have to be examined. Here we identify the number of patents assigned by four foreign governments to Indian pharmaceutical and biotechnological companies up to December 31, 2009. It is known that the United...

Patents are important for biotechnology and pharmaceutical companies. In order to remain valid, an issued patent has to be ‘maintained’ by the payment of fees to the patent office at three well-defined times over several years. The article examines whether Indian companies in these sectors...

In order to help reduce drug prices, governments in countries such as India are devising policies to help local biotech companies. These companies are also initiating original drug discovery programmes. How much should these governments and companies be concerned about patents? We have...

One of the most heated discussions in economics in recent years has concerned the relationship between market structure and innovation. After a half-century of debate and innumerable studies, the consensus is that there is no clear answer to the question. On a concrete level, the uncertainty...

This paper attempts to elucidate upon the current changes in the Indian Pharmaceutical Industry (IPI) brought about by the product patent regime 2005. The study relates the concept of strategic leadership as a source of competitive advantage for the firm in an industry where science and...

In 1991 a most-favored-customer (MFC) rule was adopted to govern pharmaceutical prices paid by Medicaid. Theoretical models show that an MFC rule commits a firm to compete less aggressively in prices. I find that the price of branded products facing generic competition rose (4% on average)....

In this paper we present a model of the long term dynamics of market structure and innovation in the pharmaceutical industry in a history friendly way. Our results show a strong increase in concentration in each therapeutic area, but a rather low level of concentration in the overall market....

This paper introduces a novel method for examining the effects of vertical integration. The basic idea is to estimate the parameters of a vertical entry game. By carefully specifying firms' payoff equations and constructing appropriate tests, it is possible to use estimates on rival profit...

We explore how firms respond to downstream product shocks. We find that affected firms increase R&D and make additional safety-related investments in their existing assets-in-place. These investments vary with firm capabilities and across shock severity. Competitors appear to vicariously learn...