Myths about innovation in the pharmaceutical industry

Joel Lexchin

Chapter 2 in Handbook of Pharmaceutical Science and Technology Studies, 2026, pp 26-42 from Edward Elgar Publishing

Abstract: Abstract: Innovation is key to improved pharmaceutical therapy, but innovation should mean a better quality of life and/or a longer lifespan. However, that meaning has been distorted through the myths that the pharmaceutical industry disseminates. This chapter begins by exploring how industry produces and propagates its myths about innovation. The idea that research and development is primarily due to the actions of drug companies is challenged and shown to be untrue. Industry claims that it costs upwards of US$2 billion to successfully bring a new drug to market is another myth that this chapter exposes. Despite industry claims that more new drugs mean better health, it is shown that the large majority of them are at best minor therapeutic advances and contribute little to improved health outcomes. The chapter then discusses how controlling the myths about innovation is combined with controlling intellectual property rights. This control lets companies set high prices, especially in the United States market where price controls are largely absent. Finally, industry maintains its myths about drug innovation by controlling the knowledge economy to ensure that its narrative is the dominant one. The chapter concludes by discussing new ways to ensure that innovation means better health.

Keywords: Control of knowledge; Drug costs and prices; Public sector; Regulation; Research and development; Expectations (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035338443
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