Persistence of innovation, technological change and quality-adjusted patents in the US pharmaceutical industry
AbstractThis paper analyzes American pharmaceutical firms' persistence in innovating just before the wave of mergers and acquisitions that accompanied the "Biotech revolution". We evaluate the impact of past innovative activity on firms' innovation propensities using a non-linear GMM estimator for exponential models that allows for predetermined regressors and linear feedback. We find that innovative activity at the firm level depends strongly on the scope of past innovations. Breakthroughs in particular depend largely on past quality innovation made by firms, and this effect may likely deter further pioneering discoveries rather than strengthen incentives to invest on non cumulative R&D. The results also shed light on the importance of small firms in the dynamics of innovation in pharmaceutical industry, and suggest that large firms persist in using patents strategically to remain dominant.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla06029.
Length: 38 pages
Date of creation: Jan 2006
Date of revision:
Contact details of provider:
Postal: 106 - 112 boulevard de l'Hôpital, 75647 Paris cedex 13
Phone: 01 44 07 81 00
Fax: 01 44 07 81 09
Web page: http://mse.univ-paris1.fr/
More information through EDIRC
Patent citations; pharmaceutical industry; persistence in innovation.;
Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-20 (All new papers)
- NEP-COM-2006-05-20 (Industrial Competition)
- NEP-ENT-2006-05-20 (Entrepreneurship)
- NEP-HEA-2006-05-20 (Health Economics)
- NEP-INO-2006-05-20 (Innovation)
- NEP-TID-2006-05-20 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wooldridge, Jeffrey M., 1997. "Multiplicative Panel Data Models Without the Strict Exogeneity Assumption," Econometric Theory, Cambridge University Press, vol. 13(05), pages 667-678, October.
- Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-33, September.
- Segerstrom, Paul S & Zolnierek, James M, 1999. "The R&D Incentives of Industry Leaders," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 745-66, August.
- Wladimir Raymond & Pierre Mohnen & Franz Palm & Sybrand Schim van der Loeff, 2010.
"Persistence of Innovation in Dutch Manufacturing: Is It Spurious?,"
The Review of Economics and Statistics,
MIT Press, vol. 92(3), pages 495-504, August.
- Wladimir Raymond & Pierre Mohnen & Franz Palm & Sybrand Schim van der Loeff, 2006. "Persistence of Innovation in Dutch Manufacturing: Is it Spurious?," CESifo Working Paper Series 1681, CESifo Group Munich.
- Raymond Wladimir & Mohnen, Pierre & Palm, Franz & Schim, van der Loeff, Sybrand, 2006. "Persistence of Innovation in Dutch Manufacturing: Is it Spurious?," Research Memorandum 009, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Mohnen, Pierre & Schim van der Loeff, S. & Palm, Franz & Raymond, Wladimir, 2006. "Persistence of Innovation in Dutch Manufacturing: Is it Spurious?," MERIT Working Papers 011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Wladimir Raymond & Pierre Mohnen & Franz Palm & Sybrand Schim van der Loeff, 2006. "Persistence of Innovation in Dutch Manufacturing: Is it Spurious?," CIRANO Working Papers 2006s-04, CIRANO.
- Reinganum, Jennifer R., 1982.
"Uncertain Innovation and the Persistence of Monopoly,"
431, California Institute of Technology, Division of the Humanities and Social Sciences.
- Reinganum, Jennifer F, 1983. "Uncertain Innovation and the Persistence of Monopoly," American Economic Review, American Economic Association, vol. 73(4), pages 741-48, September.
- Sutton, John, 1996. "Technology and market structure," European Economic Review, Elsevier, vol. 40(3-5), pages 511-530, April.
- Mark Schankerman, 1998. "How Valuable is Patent Protection? Estimates by Technology Field," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 77-107, Spring.
- repec:cup:etheor:v:13:y:1997:i:5:p:667-78 is not listed on IDEAS
- LE BAS Christian & POUSSING Nicolas, 2013.
"Are complex innovators more persistent than single innovators? An empirical analysis of innovation persistence drivers,"
CEPS/INSTEAD Working Paper Series
- Christian Le Bas & Nicolas Poussing, 2014. "Are Complex Innovators More Persistent Than Single Innovators? An Empirical Analysis Of Innovation Persistence Drivers," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1450008-1-1.
- Christian Le Bas & Nicolas Poussing, 2012. "Are complex innovators more persistent than single innovators ? An empirical analysis of innovation persistence drivers," Working Papers halshs-00663788, HAL.
- Christian Le Bas & Nicolas Poussing, 2012. "Are complex innovators more persistent than single innovators ? An empirical analysis of innovation persistence drivers," Working Papers 1201, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- LE BAS Christian & MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Technological innovation persistence: Literature survey and exploration of the role of organizational innovation," CEPS/INSTEAD Working Paper Series 2011-54, CEPS/INSTEAD.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lucie Label).
If references are entirely missing, you can add them using this form.