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Generic Competition and the Incentives for Early-Stage Pharmaceutical Innovation / Lee Branstetter, Chirantan Chatterjee, Matthew J. Higgins.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Branstetter, Lee.
Contributor:
National Bureau of Economic Research.
Chatterjee, Chirantan.
Higgins, Matthew J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w20532.
NBER working paper series no. w20532
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Starving
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2014.
Summary:
What impact has rising generic competition had on the nature and direction of pharmaceutical innovation? We find broad-based, strong evidence that pharmaceutical companies have diverted their new drug development efforts away from therapeutic markets already well-served by generic drugs. We also find that increasing generic competition induces firms to shift their R&D activity towards more biologic-based products and away from chemical-based products. We conclude by discussing potential implications of our results for long-run innovation policy.
Notes:
Print version record
September 2014.

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