TY  - RPRT
EP  - 30
ID  - eprints1202
N1  - The paper was presented at the 4th ZEW Conference on Economics of Innovation and Patenting, Mannheim, May 19-20, 2011. Comments from Andrew Toole, Frank Rothaermel, RenŽe Belderbos, Bart Leten and conference participants are gratefully acknowledged.
N2  - We build a cumulative innovation model in which both success and failure provide valuable information for future research. To test this learning mechanism, we use a dataset covering outcomes of world-wide R&D projects in the pharmaceutical industry, and proxy knowledge flows with forward citations received by patents associated with each project. Empirical results confirm theoretical predictions that patents associated with successfully completed projects (i.e., leading to drug launch on the market) receive more citations than those associated to failed (terminated) projects, which in turn are cited more often than patents lacking clinical or preclinical information. We therefore offer evidence of the value of failures as research inputs in (pharmaceutical) innovation.
M1  - imt_eic_working_paper
SN  - 2279-6894
PB  - IMT Institute for Advanced Studies
A1  - Chiou, Jing-Yuan
A1  - Magazzini, Laura
A1  - Pammolli, Fabio
A1  - Riccaboni, Massimo
UR  - http://eprints.imtlucca.it/1202/
KW  - JEL-codes: D23; D83; O3 
Y1  - 2012/01//
TI  - The Value of Failures in Pharmaceutical R&D
AV  - public
ER  -