The Impact of Patenting on New Product Introductions in the Pharmaceutical Industry
AbstractSince Comanor and Scherer (1969), researchers have been using patents as a proxy for new product development. In this paper, we reevaluate this relationship by using novel new data. We demonstrate that the relationship between patenting and new FDA-approved product introductions has diminished considerably since the 1950s, and in fact no longer holds. Moreover, we also find that the relationship between R&D expenditures and new product introductions is considerably smaller than previously reported. While measures of patenting remain important in predicting the arrival of product introductions, the most important predictor is the loss of exclusivity protection on a current product. Our evidence suggests that pharmaceutical firms are acting strategically with respect to new product introductions. Finally, we find no relationship between firm size and new product introductions.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 4574.
Date of creation: 08 Aug 2007
Date of revision:
Patenting; Pharmaceutical industry; New product management; Research productivity;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-27 (All new papers)
- NEP-COM-2007-08-27 (Industrial Competition)
- NEP-EFF-2007-08-27 (Efficiency & Productivity)
- NEP-HEA-2007-08-27 (Health Economics)
- NEP-INO-2007-08-27 (Innovation)
- NEP-IPR-2007-08-27 (Intellectual Property Rights)
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