Markets for technology can promote innovation by allowing for division of labor in research and development. Some firms may specialize in the discovery of ideas, while others have a comparative advantage in later stages of development and marketing. However, these gains depend on the timing of...

This article provides empirical tests of the hypothesis of optimal cognitive distance , proposed by Nooteboom (1999, 2000), in two distinct empirical settings.Variety of cognition, needed for learning, has two dimensions: the number of agents with different cognition, and differences in...

We examine how R&D portfolios of drug pipelines affect pharmaceutical licensing, controlling firm size, diversity, and competition. The data collected comprises 434 license-ins and 329 license-outs closed by 54 Japanese pharmaceutical companies between 1997 and 2007. We pay special attention to...

While most economists believe that public scientific research fuels industry innovation and economic growth, systematic evidence supporting this relationship is surprisingly limited. In a recent study, Acemoglu and Linn (2004) identified market size as a significant driver of drug innovation in...

Brazil has evolved strikingly in the last few years in the area of health assistance and access to medicines by its aging and urbanizing population. The government has also set the health industry - which includes pharmaceutical innovation - as one of its strategic sectors to be developed in the...

This paper examines the effect of foreign direct investment (FDI) on domestic innovation based on a data set covering the pharmaceutical industries across 29 provinces in the People's Republic of China (PRC) over the period 1998-2007. We show that there is a negative horizontal spillover effect...

In this paper, I examined how the People's Republic of China (PRC) and India, two largest transitional economies in Asia, have engaged in improving their innovation capability in the economic transition. First, I measured and compared innovation capability of both countries by using not only...

Are IPRs institutions meant to foster innovative activities or conversely to secure appropriation and profitability? Taking stock of a long-term empirical evidence on the pharmaceutical sector in the US, we can hardly support IPRs intended as an innovation rewarding institution. According to our...

Die im GKV-Finanzstabilisierungsgesetz verankerten Änderungen der Rahmenbedingungen für die Erstattungsbetragsverhandlungen innovativer Arzneimittel werden als Gefahr für die zukünftige Versorgung der Patienten und für den Forschungs- und Produktionsstandort gesehen. Die neuen Leitplanken...

This paper analyzes M&A patterns of R&D projects in the antidiabetics industry. For this purpose, we construct a database with all corporate individual antidiabetics R&D projects over the period 1997 - 2017, and add detailed information on firms' technology dimension using patent information,...