R&D grants and medical innovation

Omer Unsal and Reza Houston

Journal of Economics and Business, 2024, vol. 128, issue C, No S0148619523000413

Abstract: This paper examines the relationship between government-funded R&D grants in the US and pharmaceutical firm innovation. We find a positive and robust relationship between grant receipt, future patents, and medical innovations. The strength of the relationship between R&D grants and pharmaceutical innovation is attenuated by firm lobbying but strengthened by industry competition, geographic dispersion, and leverage. Investors recognize the unequal value added by grant receipt. R&D grant receipt also impacts future financial performance and sales growth. Our results indicate that the relationship between R&D and innovation is more nuanced than previously identified.

Keywords: Pharmaceutical Innovation; Government Subsidies; Grants; Innovation (search for similar items in EconPapers)
JEL-codes: G30 G38 H81 O31 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148619523000413
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:128:y:2024:i:c:s0148619523000413

DOI: 10.1016/j.jeconbus.2023.106148

Access Statistics for this article

Journal of Economics and Business is currently edited by Emanuele Bajo and Moritz Ritter

More articles in Journal of Economics and Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().