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Patents and the global diffusion of new drugs

Cockburn, Iain and Lanjouw, Jean O. and Schankerman, Mark (2016) Patents and the global diffusion of new drugs. American Economic Review, 106 (01). 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
Subjects: R Medicine > RA Public aspects of medicine
Sets: Departments > Economics
Identification Number: 10.1257/aer.20141482
Date Deposited: 18 Feb 2016 14:55
Last Modified: 01 Mar 2017 17:05
URI: http://eprints.lse.ac.uk/id/eprint/65415

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