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Entry and Patenting in the Pharmaceutical Industry

Author

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  • Maria Letizia GIORGETTI

    ()

  • Maria Luisa MANCUSI

    ()

Abstract

We study the impact of incumbents' and own patents on entry in pharmaceutical submarkets in the USA for the period 1988-1998. We relate the variation in the effect of patents on entry to some observable market and firm characteristics and find a negative impact of incumbents' patents on entry, which confirms the role of patents as a barrier to entry.

Suggested Citation

  • Maria Letizia GIORGETTI & Maria Luisa MANCUSI, 2016. "Entry and Patenting in the Pharmaceutical Industry," Departmental Working Papers 2016-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  • Handle: RePEc:mil:wpdepa:2016-02
    as

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    File URL: http://wp.demm.unimi.it/files/wp/2016/DEMM-2016_02wp.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Entry; Patents; Bayesian Inference; Panel data; Probit model; Random effects;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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