Market size in innovation: Theory and evidence from the pharmaceutical industry

• 成果类型: Article
• 署名作者: Acemoglu, D; Linn, J
• 署名单位: Massachusetts Institute of Technology (MIT)
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1162/0033553041502144
• 发表日期: 2004
• 页码: 1049-1090
• 关键词: drug development; biotechnology; patents; scale; SCOPE

摘要

This paper investigates the effect of ( potential) market size on entry of new drugs and pharmaceutical innovation. Focusing on exogenous changes driven by U. S. demographic trends, we find a large effect of potential market size on the entry of nongeneric drugs and new molecular entities. These effects are generally robust to controlling for a variety of supply-side factors and changes in the technology of pharmaceutical research.