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    Determinants of pharmaceutical innovation: the role of technological opportunities revisited


    Rake, Bastian (2017) Determinants of pharmaceutical innovation: the role of technological opportunities revisited. Journal of Evolutionary Economics, 27 (4). pp. 691-727. ISSN 0936-9937

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    Abstract

    Recent empirical contributions emphasize the importance of (potential) market size for the development of new pharmaceuticals. At the same time, many scholars point out the importance of scientific advances for the industry’s R&D activities. Against this background I analyze the relationship between (potential) market size, technological opportunities, and the number of new pharmaceuticals in the United States. Technological opportunities are operationalized as growth rates of the relevant knowledge stock, as proposed by Andersen (Struct Chang Econ Dyn 9(1):5–34 1998, J Evol Econ 9(4):487–526 1999). I analyze a unique dataset by using an “entry stock” Poisson quasi-maximum likelihood estimator. The results reveal a rather robust and significantly positive response of the number of new pharmaceuticals, i.e., new molecular entities or new drug approvals, to market size and technological opportunities.

    Item Type: Article
    Keywords: Innovation and Invention: Processes and Incentives; Demographic Economics; Demand and Supply of Labor; Industry Studies; Manufacturing; Chemicals; Rubber; Drugs; Biotechnology; Plastics;
    Academic Unit: Faculty of Social Sciences > School of Business
    Item ID: 11216
    Identification Number: https://doi.org/10.1007/s00191-017-0524-6 REGULAR ARTICLE
    Depositing User: Bastian Rake
    Date Deposited: 11 Oct 2019 14:33
    Journal or Publication Title: Journal of Evolutionary Economics
    Publisher: Springer NAture
    Refereed: Yes
    URI:

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