Data-Driven Health Innovation and Privacy Regulation

Conti Chiara, D’Annunzio Anna and Reverberi Pierfrancesco ()
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Conti Chiara: Department of Computer, Control, and Management Engineering, Sapienza University of Rome, Roma, Italy
D’Annunzio Anna: TBS Business School, Toulouse, France
Reverberi Pierfrancesco: Department of Computer, Control, and Management Engineering, Sapienza University of Rome, Roma, Italy

The B.E. Journal of Economic Analysis & Policy, 2024, vol. 24, issue 1, 329-338

Abstract: Data-driven health innovation may lead to develop targeted treatments using health data. We consider privacy-sensitive patients who may decide to share personal health data if compensated. Each patient does not internalize the impact of sharing data on drug innovation. We show that investment incentives in targeted treatments are too weak as long as such innovation has a public good nature so that patients can free ride on sharing health data. Then, privacy protection measures reducing data sharing risks can promote pharmaceutical R&D and social welfare.

Keywords: health data; data-driven innovation; precision medicine; privacy regulation (search for similar items in EconPapers)
JEL-codes: I10 L12 L51 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1515/bejeap-2023-0020

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