R&D in the pharmaceutical industry: A world of small innovations

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Domínguez, Beatriz; Ganuza, Juan José; Llobet, Gerard. R&D in the pharmaceutical industry: A world of small innovations. 2005
To cite or link this document: http://hdl.handle.net/10230/1042
dc.contributor.author Domínguez, Beatriz
dc.contributor.author Ganuza, Juan José
dc.contributor.author Llobet, Gerard
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2005-12-01
dc.identifier.uri http://hdl.handle.net/10230/1042
dc.description.abstract It is commonly argued that in recent years pharmaceutical companies have directed their R&D towards small improvements of existing compounds instead of more risky drastic innovations. In this paper we show that the proliferation of these small innovations is likely to be linked to the lack of market sensitivity of a part of the demand to changes in prices. Compared to their social contribution, small innovations are relatively more profitable than large ones because they are targeted to the smaller but more inelastic part of the demand. We also study the effect of regulatory instruments such as price ceilings, copayments and reference prices and extend the analysis to competition in research.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 936
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title R&D in the pharmaceutical industry: A world of small innovations
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2016-06-04T02:50:55Z
dc.subject.keyword Business Economics and Industrial Organization
dc.subject.keyword Microeconomics
dc.subject.keyword Labour, Public, Development and Health Economics
dc.subject.keyword health-care
dc.subject.keyword pharmaceuticals
dc.subject.keyword innovation
dc.rights.accessRights info:eu-repo/semantics/openAccess

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