Patent Disclosure and R&D Competition in Pharmaceuticals
AbstractThe prominent role played by patents within the pharmaceutical domain is unquestionable. In this paper we take an unusual perspective and focus on a relatively neglected implication of patents: the effect of patent-induced information disclosure (of both successes and failures) on the dynamics of R&D and market competition. The study builds upon the combination of two large datasets, linking the information about patents to firm level data on R&D projects and their outcome. Two case studies in the fields of anti-inflammatory compounds and cancer research complement our analysis. We show the important role played by patent disclosure in shaping firms technological trajectories through the possibility of reciprocal monitoring in a context of parallel research efforts, and suggest the importance of enhancing the diffusion of information concerning failures, not only to avoid wasteful duplication of innovative efforts, but also as a tool for the identification of promising research trajectories. This paper is the result of the "R&D competition" research project carried out jointly with Adrian Towse and Martina Garau of the Office of Health Economics, London, UK. A preliminary draft of the paper has been presented to the DRUID Summer Conference 2006 (Copenhagen), and to the 11th ISS Conference (Sophia-Antipolis).
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Bibliographic InfoPaper provided by Department of Computer and Management Sciences, University of Trento, Italy in its series ROCK Working Papers with number 053.
Length: 30 pages
Date of creation: Jun 2009
Date of revision: 11 Jun 2009
Postal: DISA Università degli Studi di Trento via Inama, 5 I-38122 Trento TN Italy
Other versions of this item:
- Laura Magazzini & Fabio Pammolli & Massimo Riccaboni & Maria Alessandra Rossi, 2009. "Patent disclosure and R&D competition in pharmaceuticals," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 18(5), pages 467-486.
- Laura Magazzini & Fabio Pammolli & Massimo Riccaboni & Maria Alessandra Rossi, 2009. "Patent Disclosure and R&D Competition in Pharmaceuticals," DISA Working Papers 0902, Department of Computer and Management Sciences, University of Trento, Italy, revised 11 Jun 2009.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-02 (All new papers)
- NEP-COM-2009-08-02 (Industrial Competition)
- NEP-CSE-2009-08-02 (Economics of Strategic Management)
- NEP-IND-2009-08-02 (Industrial Organization)
- NEP-INO-2009-08-02 (Innovation)
- NEP-IPR-2009-08-02 (Intellectual Property Rights)
- NEP-PPM-2009-08-02 (Project, Program & Portfolio Management)
- NEP-TID-2009-08-02 (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.:
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