Patents and the global diffusion of new drugs

Cockburn, Iain, Lanjouw, Jean O. and Schankerman, Mark ORCID: 0009-0006-1071-7672 (2016) Patents and the global diffusion of new drugs. American Economic Review, 106 (1). pp. 136-164. ISSN 0002-8282

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Abstract

Analysis of the timing of launches of 642 new drugs in 76 countries during 1983-2002 shows that patent and price regulation regimes strongly affect how quickly new drugs become commercially available in different countries. Price regulation delays launch, while longer and more extensive patent rights accelerate it. Health policy institutions and economic and demographic factors that make markets more profitable also speed up diffusion. The estimated effects are generally robust to controlling for endogeneity of policy regimes with country fixed effects and instrumental variables. The results highlight the important role of policy choices in driving the diffusion of new innovations.

Item Type:	Article
Official URL:	http://www.vanderbilt.edu/AEA/
Additional Information:	© 2016 American Economic Review
Divisions:	Economics
Subjects:	R Medicine > RA Public aspects of medicine
JEL classification:	I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy; Regulation; Public Health L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation L - Industrial Organization > L6 - Industry Studies: Manufacturing > L65 - Chemicals; Rubber; Drugs; Biotechnology O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O34 - Intellectual Property Rights: National and International Issues
Date Deposited:	18 Feb 2016 14:55
Last Modified:	14 Nov 2024 18:24
URI:	http://eprints.lse.ac.uk/id/eprint/65415

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