Generic competition and the incentives for early-stage pharmaceutical innovation

Branstetter, Lee, Chatterjee, Chirantan and Higgins, Matthew (2022) Generic competition and the incentives for early-stage pharmaceutical innovation. Research Policy, 51 (10). ISSN 0048-7333

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What 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.

Item Type: Article
Schools and Departments: University of Sussex Business School > SPRU - Science Policy Research Unit
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 27 Jul 2022 09:16
Last Modified: 09 Aug 2022 13:00

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