IDEAS home Printed from https://ideas.repec.org/h/nbr/nberch/13988.html
   My bibliography  Save this book chapter

Therapeutic Translation of Genomic Science: Opportunities and Limitations of GWAS

In: Economic Dimensions of Personalized and Precision Medicine

Author

Listed:
  • Manuel Hermosilla
  • Jorge Lemus

Abstract

Many scientists predicted a swift revolution in human therapeutics after the completion of the Human Genome Project (“HGP”). This revolution, however, has been slow to materialize in spite of the scientific advances. We investigate the role of biological complexity in slowing down this revolution. Our test relies on a disease-specific measure of biological complexity, constructed by drawing on insights from Network Medicine (Barabási et al., 2011). According to our measure, more complex diseases are associated with a larger number of genetic mutations—higher centrality in the Human Disease Network (Goh et al., 2007). With this measure in hand, we estimate the rate of translation of new science into early-stage drug innovation by focusing on a leading type of genetic epidemiological knowledge (Genome-Wide Association Studies), and employing standard methods for the measurement of R&D productivity. For less complex diseases, we find a strong and positive association between cumulative knowledge and the amount of innovation. This association weakens as complexity increases, becoming statistically insignificant at the extreme. Our results suggest that biological complexity is, in part, responsible for the slower-than-expected unfolding of the therapeutical revolution set in motion by the HGP.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Manuel Hermosilla & Jorge Lemus, 2018. "Therapeutic Translation of Genomic Science: Opportunities and Limitations of GWAS," NBER Chapters, in: Economic Dimensions of Personalized and Precision Medicine, pages 21-52, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:13988
    as

    Download full text from publisher

    File URL: http://www.nber.org/chapters/c13988.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rebecca Henderson & Iain Cockburn, 1996. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 32-59, Spring.
    2. Blundell, Richard & Griffith, Rachel & Windmeijer, Frank, 2002. "Individual effects and dynamics in count data models," Journal of Econometrics, Elsevier, vol. 108(1), pages 113-131, May.
    3. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.),Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    4. Stephan, Paula E., 2010. "The Economics of Science," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.),Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 217-273, Elsevier.
    5. Cockburn, Iain M & Henderson, Rebecca M, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-182, June.
    6. Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August.
    7. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2002. "Links and Impacts: The Influence of Public Research on Industrial R&D," Management Science, INFORMS, vol. 48(1), pages 1-23, January.
    8. David Dranove & Craig Garthwaite & Manuel Hermosilla, 2014. "Pharmaceutical Profits and the Social Value of Innovation," NBER Working Papers 20212, National Bureau of Economic Research, Inc.
    9. Rosenberg, Nathan, 1974. "Science, Invention and Economic Growth," Economic Journal, Royal Economic Society, vol. 84(333), pages 90-108, March.
    10. Sveikauskas, Leo, 1981. "Technological Inputs and Multifactor Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 275-282, May.
    11. Toole, Andrew A., 2012. "The impact of public basic research on industrial innovation: Evidence from the pharmaceutical industry," Research Policy, Elsevier, vol. 41(1), pages 1-12.
    12. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
    13. Goldman Dana P. & Lakdawalla Darius & Sood Neeraj & Gupta Charu & Vasudeva Eshan & Trakas Kostas & Riley Ralph & Agus David & Jena Anupam B. & Philipson Tomas J., 2013. "The Value of Diagnostic Testing in Personalized Medicine," Forum for Health Economics & Policy, De Gruyter, vol. 16(2), pages 121-133, September.
    14. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
    15. Ward, Michael R & Dranove, David, 1995. "The Vertical Chain of Research and Development in the Pharmaceutical Industry," Economic Inquiry, Western Economic Association International, vol. 33(1), pages 70-87, January.
    16. Cockburn, Iain M. & Henderson, Rebecca M., 2001. "Scale and scope in drug development: unpacking the advantages of size in pharmaceutical research," Journal of Health Economics, Elsevier, vol. 20(6), pages 1033-1057, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Veenstra David L. & Basu Anirban & Mandelblatt Jeanne & Neumann Peter & Peterson Josh F. & Ramsey Scott D., 2020. "Health Economics Tools and Precision Medicine: Opportunities and Challenges," Forum for Health Economics & Policy, De Gruyter, vol. 23(1), pages 1-14, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan, Paula E., 2010. "The Economics of Science," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.),Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 217-273, Elsevier.
    2. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.),Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    3. Lim, Kwanghui, 2004. "The relationship between research and innovation in the semiconductor and pharmaceutical industries (1981-1997)," Research Policy, Elsevier, vol. 33(2), pages 287-321, March.
    4. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute of Labor Economics (IZA).
    5. Gersbach, Hans & Sorger, Gerhard & Amon, Christian, 2018. "Hierarchical growth: Basic and applied research," Journal of Economic Dynamics and Control, Elsevier, vol. 90(C), pages 434-459.
    6. Michelle Gittelman & Bruce Kogut, 2003. "Does Good Science Lead to Valuable Knowledge? Biotechnology Firms and the Evolutionary Logic of Citation Patterns," Management Science, INFORMS, vol. 49(4), pages 366-382, April.
    7. Leten, Bart & Kelchtermans, Stijn & Belderbos, Ren, 2010. "Internal Basic Research, External Basic Research and the Technological Performance of Pharmaceutical Firms," Working Papers 2010/12, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    8. Bastian Rake, 2017. "Determinants of pharmaceutical innovation: the role of technological opportunities revisited," Journal of Evolutionary Economics, Springer, vol. 27(4), pages 691-727, September.
    9. Pierre Azoulay & Joshua S. Graff Zivin & Bhaven N. Sampat, 2011. "The Diffusion of Scientific Knowledge across Time and Space: Evidence from Professional Transitions for the Superstars of Medicine," NBER Chapters, in: The Rate and Direction of Inventive Activity Revisited, pages 107-155, National Bureau of Economic Research, Inc.
    10. Margaret K. Kyle, 2019. "The Alignment of Innovation Policy and Social Welfare: Evidence from Pharmaceuticals," NBER Chapters, in: Innovation Policy and the Economy, Volume 20, pages 95-123, National Bureau of Economic Research, Inc.
    11. Arts, Sam & Cassiman, Bruno & Veugelers, Reinhilde, 2012. "Mind the gap: capturing value from basic research: boundary crossing inventors and partnerships," CEPR Discussion Papers 9215, C.E.P.R. Discussion Papers.
    12. Iain M. Cockburn & Rebecca M. Henderson, 2001. "Publicly Funded Science and the Productivity of the Pharmaceutical Industry," NBER Chapters, in: Innovation Policy and the Economy, Volume 1, pages 1-34, National Bureau of Economic Research, Inc.
    13. Scott Stern, 2004. "Do Scientists Pay to Be Scientists?," Management Science, INFORMS, vol. 50(6), pages 835-853, June.
    14. Pluvia Zuniga, 2011. "The State of Patenting at Research Institutions in Developing Countries: Policy Approaches and Practices," WIPO Economic Research Working Papers 04, World Intellectual Property Organization - Economics and Statistics Division, revised Dec 2011.
    15. Dirk Czarnitzki & Christian Rammer & Andrew Toole, 2014. "University spin-offs and the “performance premium”," Small Business Economics, Springer, vol. 43(2), pages 309-326, August.
    16. Cassiman, Bruno & Veugelers, Reinhilde & Zuniga, Pluvia, 2007. "Science linkages and innovation performance: An analysis on CIS-3 firms in Belgium," IESE Research Papers D/671, IESE Business School.
    17. Denisa Mindruta, 2013. "Value creation in university-firm research collaborations: A matching approach," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 644-665, June.
    18. Hohberger, Jan, 2016. "Diffusion of science-based inventions," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 66-77.
    19. Toole, Andrew A. & Czarnitzki, Dirk, 2007. "Life Scientist Mobility from Academe to Industry: Does Academic Entrepreneurship Induce a Costly ?Brain Drain? on the Not-for-Profit Research Sector?," ZEW Discussion Papers 07-072, ZEW - Leibniz Centre for European Economic Research.
    20. Lee Branstetter & Kwon Hyeog Ug, 2004. "The Restructuring Of Japanese Research And Development: The Increasing Impact Of Science On Japanese R&D," Discussion papers 04021, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:13988. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.