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Generic competition and the incentives for early-stage pharmaceutical innovation
journal contribution
posted on 2023-06-10, 04:20 authored by Lee Branstetter, Chirantan ChatterjeeChirantan Chatterjee, Matthew HigginsWhat impact has rising generic competition had on the nature and direction of pharmaceutical innovation? We find broad-based, strong evidence that pharmaceutical companies have diverted their new drug development efforts away from therapeutic markets already well-served by generic drugs. We also find that increasing generic competition induces firms to shift their R&D activity towards more biologic-based products and away from chemical-based products. We conclude by discussing potential implications of our results for long-run innovation policy.
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Publication status
- Published
File Version
- Accepted version
Journal
Research PolicyISSN
0048-7333Publisher
ElsevierExternal DOI
Issue
10Volume
51Department affiliated with
- SPRU - Science Policy Research Unit Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2022-07-27First Compliant Deposit (FCD) Date
2022-07-27Usage metrics
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