Are the economics of pharmaceutical research and development changing?: productivity, patents and political pressures.
Pharmaceutical research and development (R&D) competition in the 1980s and 1990 s was characterised by rising R&D expenditures, favourable returns to innovators and the introduction of many new classes of drugs with high social benefits. However, in the past 3 years, the number of new drug introductions has been well below the historical trend, while the cost per new drug continues to increase. In addition to lagging R&D productivity, the industry has been characterised by other economic and policy uncertainties. These include a wave of early patent challenges and growing political pressure to contain pharmaceutical expenditures. This paper examines the consequences of these developments.
Grabowski
Henry
H
Department of Economics, Duke University, Durham, North Carolina 27708, USA. grabow@econ.duke.edu
D017277:Drug Approval / Q000331:legislation & jurisprudence / Q000379:methods; D004345:Drug Industry / Q000191:economics / Q000379:methods / Q000639:trends; D017850:Economics, Pharmaceutical; D004526:Efficiency; D006801:Humans; D010330:Patents as Topic / Q000331:legislation & jurisprudence; D012106:Research / Q000191:economics* / Q000639:trends; D012107:Research Design; D013678:Technology, Pharmaceutical / Q000191:economics* / Q000379:methods / Q000639:trends