eprintid: 1202
rev_number: 4
eprint_status: archive
userid: 1
dir: disk0/00/00/12/02
datestamp: 2012-03-02 12:06:48
lastmod: 2012-03-02 12:06:48
status_changed: 2012-03-02 12:06:48
type: monograph
succeeds: 1150
metadata_visibility: show
creators_name: Chiou, Jing-Yuan
creators_name: Magazzini, Laura
creators_name: Pammolli, Fabio
creators_name: Riccaboni, Massimo
creators_id: jy.chiou@imtlucca.it
creators_id: 
creators_id: f.pammolli@imtlucca.it
creators_id: massimo.riccaboni@imtlucca.it
title: The Value of Failures in Pharmaceutical R&D
ispublished: pub
subjects: HB
subjects: RS
divisions: EIC
full_text_status: public
monograph_type: imt_eic_working_paper
keywords: JEL-codes: D23; D83; O3 
note: 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, Ren´e Belderbos, Bart Leten and conference participants are gratefully acknowledged.
abstract: 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.
date: 2012-01
date_type: published
number: 1
publisher: IMT Institute for Advanced Studies
pages: 30
institution: IMT Institute for Advanced Studies Lucca
issn: 2279-6894
citation:   Chiou, Jing-Yuan and Magazzini, Laura and Pammolli, Fabio and Riccaboni, Massimo  The Value of Failures in Pharmaceutical R&D.  EIC working paper series  #1/2012    IMT Institute for Advanced Studies    ISSN 2279-6894.      
document_url: http://eprints.imtlucca.it/1202/1/EIC_WP_1_2012.pdf