Are Important Innovations Rewarded? Evidence from Pharmaceutical Markets

Margaret Kyle

Review of Industrial Organization, 2018, vol. 53, issue 1, No 9, 234 pages

Abstract: Abstract This paper focuses on the relationship between therapeutic value and different measures of market rewards: the number of patents, price, market share, and revenues. Using an assessment of therapeutic value that is provided by the French Haute Authorité de Santé (HAS), I find a weak relationship between most measures of rewards and this assessment of therapeutic value, which suggests that the returns to developing a “me-too” product are not very different from developing treatments with greater therapeutic effects. One interpretation is that the HAS score is a poor assessment of therapeutic value, in which case the use of similar health technology assessments by governments and other payers should be re-examined. Alternatively, if the HAS score is informative, the results suggest that countries are overspending on less innovative products, and that a re-balancing of innovation incentives may be worth considering if therapeutic value is highly related to social welfare.

Keywords: Innovation; Intellectual property; Pharmaceuticals; Regulation (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s11151-018-9639-7 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Are Important Innovations Rewarded? Evidence from Pharmaceutical Markets (2018)
Working Paper: Are Important Innovations Rewarded? Evidence from Pharmaceutical Markets (2017)
Working Paper: Are Important Innovations Rewarded? Evidence from Pharmaceutical Markets (2017)
Working Paper: Are Important Innovations Rewarded? Evidence from Pharmaceutical Markets (2016)
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:kap:revind:v:53:y:2018:i:1:d:10.1007_s11151-018-9639-7

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2

DOI: 10.1007/s11151-018-9639-7

Access Statistics for this article

Review of Industrial Organization is currently edited by L.J. White

More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().