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R&D, Within and Between Patent Competition in the Pharmaceutical Industry

Magazzini, Laura and Pammolli, Fabio and Riccaboni, Massimo R&D, Within and Between Patent Competition in the Pharmaceutical Industry. EIC working paper series #3/2013 ISSN 2279-6894.

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We analyse the consequences of the increasing complexity of R&D on within- and between-patent competition in the pharmaceutical industry. The intensity of competition is measured by jointly considering the timing from market launch to patent expiry, the strength of between-patent competition as well as competition introduced by generic producers. A simple model is proposed that predicts the shrinking of product lifetimes in the presence of correlated parallel R&D projects and market portfolios. The model is tested using data on pharmaceutical products sold in Europe and in the US. Based on our model we are able to estimate the impact of R&D complexity and relatedness among R&D portfolios on the value of innovative drugs.

Item Type: Working Paper (EIC working paper series)
Uncontrolled Keywords: Patent value, innovation, R&D competition, pharmaceutical industry. - JEL Classification: D23; D83; O34; O31; L13.
Subjects: H Social Sciences > HB Economic Theory
R Medicine > RS Pharmacy and materia medica
Research Area: Economics and Institutional Change
Depositing User: Ms T. Iannizzi
Date Deposited: 01 Jul 2013 09:02
Last Modified: 01 Jul 2013 09:02
URI: http://eprints.imtlucca.it/id/eprint/1625

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