Patents and the global diffusion of new drugs

Iain Cockburn, Jean Lanjouw and Mark Schankerman

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: I18 L11 L51 L65 O31 O33 O34 (search for similar items in EconPapers)
Date: 2016-01-01
New Economics Papers: this item is included in nep-com, nep-hea, nep-ind, nep-ino, nep-ipr, nep-pr~, nep-mkt and nep-tid
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Citations: View citations in EconPapers (38)

Published in American Economic Review, 1, January, 2016, 106(1), pp. 136-164. ISSN: 0002-8282

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Related works:
Journal Article: Patents and the Global Diffusion of New Drugs (2016)
Working Paper: Patents and the Global Diffusion of New Drugs (2014)
Working Paper: Patents and the Global Diffusion of New Drugs (2014)
Working Paper: Patents and the global diffusion of new drugs (2014)
Working Paper: Patents and the Global Diffusion of New Drugs (2014)
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