Patents and New Product Development in the Pharmaceutical and Biotechnology Industries
AbstractThis paper examines the rationale for intellectual property protection in the development of new pharmaceutical products. Prior survey studies of R&D executives have found that patents play a more critical role in appropriating the benefits of innovation in pharmaceuticals compared to other high tech industries. This paper considers why this is so based on an analysis of the economic characteristics of R&D costs and returns in the pharmaceutical and biotechnology industries. The final section examines recent policy developments and issues surrounding patent lifetime and generic competition in this industry.
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Bibliographic InfoPaper provided by Duke University, Department of Economics in its series Working Papers with number 02-25.
Date of creation: 2002
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