Pharmaceutical Regulation and Incentives for Innovation in an International Perspective

Pierre Dubois

No 25-1674, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We examine pharmaceutical regulations and incentives for innovation from an international perspective, highlighting the public good nature of healthcare innovation and its cross-border diffusion. We summarize the empirical evidence on how push and pull incentives shape R&D investment, innovation, and global access. We emphasize the role of strategic interdependencies and spillovers, including free-riding in R&D financing, learning-by-doing effects, drug shortages, reference pricing, and parallel trade. We then provide new evidence on the international spillovers of pull incentives on innovation, showing that international cooperation and innovative institutions are necessary to better align national regulations with the global objective of sustaining pharmaceutical innovation.

Keywords: Pharmaceutical Regulation; Innovation; R&D; International Spillovers (search for similar items in EconPapers)
JEL-codes: I10 I11 I18 L10 L20 (search for similar items in EconPapers)
Date: 2025-10-10
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:131002

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