R&D, Within and Between Patent Competition in the Pharmaceutical Industry

Laura Magazzini, Fabio Pammolli () and Massimo Riccaboni ()
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Massimo Riccaboni: IMT School for Advanced Studies Lucca

No 3/2013, Working Papers from IMT School for Advanced Studies Lucca

Abstract: : We analyse the consequences of the increasing complexity of R&D on within- and between-patent competition in the pharmaceutical industry. The intensity of competition is measured by jointly considering the timing from market launch to patent expiry, the strength of between-patent competition as well as competition introduced by generic producers. A simple model is proposed that predicts the shrinking of product lifetimes in the presence of correlated parallel R&D projects and market portfolios. The model is tested using data on pharmaceutical products sold in Europe and in the US. Based on our model we are able to estimate the impact of R&D complexity and relatedness among R&D portfolios on the value of innovative drugs.

Keywords: Patent value; innovation; R&D competition; Pharmaceutical industry. (search for similar items in EconPapers)
JEL-codes: D23 D83 L13 O31 O34 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-07, Revised 2013-07
New Economics Papers: this item is included in nep-com, nep-cse, nep-ind, nep-ino, nep-ipr, nep-pr~, nep-ppm and nep-tid
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Published in EIC working paper series

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https://eprints.imtlucca.it/1625/1/EIC_WP_3_2013.pdf First version, 2013

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Persistent link: https://EconPapers.repec.org/RePEc:ial:wpaper:3/2013

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