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Data-Driven Health Innovation and Privacy Regulation

Author

Listed:
  • Conti Chiara
  • Reverberi Pierfrancesco

    (Department of Computer, Control, and Management Engineering, Sapienza University of Rome, Roma, Italy)

  • D’Annunzio Anna

    (TBS Business School, Toulouse, France)

Abstract

Data-driven health innovation may lead to develop targeted treatments using health data. We consider privacy-sensitive patients who may decide to share personal health data if compensated. Each patient does not internalize the impact of sharing data on drug innovation. We show that investment incentives in targeted treatments are too weak as long as such innovation has a public good nature so that patients can free ride on sharing health data. Then, privacy protection measures reducing data sharing risks can promote pharmaceutical R&D and social welfare.

Suggested Citation

  • Conti Chiara & Reverberi Pierfrancesco & D’Annunzio Anna, 2024. "Data-Driven Health Innovation and Privacy Regulation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(1), pages 329-338, January.
    • Handle: RePEc:bpj:bejeap:v:24:y:2024:i:1:p:329-338:n:6
    DOI: 10.1515/bejeap-2023-0020
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    More about this item

    Keywords

    health data; data-driven innovation; precision medicine; privacy regulation;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • I10 - Health, Education, and Welfare - - Health - - - General

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