eprintid: 3572 rev_number: 8 eprint_status: archive userid: 69 dir: disk0/00/00/35/72 datestamp: 2016-10-06 14:27:01 lastmod: 2016-10-06 14:27:01 status_changed: 2016-10-06 14:27:01 type: article metadata_visibility: show creators_name: Chiou, Jing-Yuan creators_name: Magazzini, Laura creators_name: Pammolli, Fabio creators_name: Riccaboni, Massimo creators_id: creators_id: creators_id: f.pammolli@imtlucca.it creators_id: massimo.riccaboni@imtlucca.it title: Learning from successes and failures in pharmaceutical R&D ispublished: pub subjects: HD28 subjects: HD61 divisions: EIC full_text_status: none note: SCOPUS ID: 2-s2.0-84953209929; WOS Accession Number: WOS:000374576900002 abstract: In this paper, we build a cumulative innovation model to understand the role of both success and failure in the learning dynamics that characterize pharmaceutical R&D. We test the prediction of our model by means of a unique dataset that combines patent information with R&D projects, thus distinguishing patents related to successfully marketed products from those covering candidate drugs that failed in clinical trials. Results confirm model predictions showing that patents associated with successfully completed projects receive more citations than those associated with failed projects. However, we also show that failed projects can be in turn cited more often than patents lacking clinical or preclinical information. We further explore the `black box' of innovation, providing evidence that both successes and failures contribute to R&D investment decisions and knowledge dynamics in science-driven sectors. date: 2016 date_type: published publication: Journal of Evolutionary Economics volume: 26 number: 2 publisher: Springer pagerange: 271-290 id_number: doi: 10.1007/s00191-015-0439-z refereed: TRUE issn: 0936-9937 official_url: http://dx.doi.org/10.1007/s00191-015-0439-z referencetext: Abrantes-Metz RM, Adams CP, Metz A (2004) Pharmaceutical Development Phases: A Duration Analysis, Bureau of Economics, US FTC Aghion P, Dewatripont M, Stein J (2008) Academic Freedom, Private-sector Focus, and the Process of Innovation. RAND J Econ 39(3):617–635 Alcácer J, Gittelman M (2006) Patent Citations as a Measure of Knowledge Flows: The Influence of Examiner Citations. Rev Econ Stat 88(4):774–779 Allison M (2012) NCATS Launches Drug Repurposing Program. 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