Access the full text.
Sign up today, get DeepDyve free for 14 days.
Notes Standard errors from analytical second derivatives in parentheses
T. Anderson, C. Hsiao (1982)Formulation and estimation of dynamic models using panel data
Journal of Econometrics, 18
M. Spence (1984)Cost Reduction, Competition and Industry Performance
D. Case, J. Wallace, H. Keim, M. Weber, J. Drayer, R. White, J. Sealey, J. Laragh (1976)Estimating renin participation in hypertension: superiority of converting enzyme inhibitor over saralasin.
The American journal of medicine, 61 5
(1991)The Empirical Exploration of a Technology Race: The Winchester Disk Drive
H. Goldblatt, James Lynch, R. Hanzal, Ward Summerville (1934)STUDIES ON EXPERIMENTAL HYPERTENSION I. THE PRODUCTION OF PERSISTENT ELEVATION OF SYSTOLIC BLOOD PRESSURE BY MEANS OF RENAL ISCHEMIA
Journal of Experimental Medicine, 59
(1993)Price Indexes for Antihypertensive Drugs that Incorporate Quality Change; A Progress Report on a Feasibility Study
Raimar Richers (1961)The theory of economic development
Rae-revista De Administracao De Empresas, 1
F. Bühler, J. Laragh, L. Baer, E. Vaughan, H. Brunner (1972)Propranolol inhibition of renin secretion. A specific approach to diagnosis and treatment of renin-dependent hypertensive diseases.
The New England journal of medicine, 287 24
K. Suzumura (1992)Cooperative and noncooperative R&D in an oligopoly with spillovers
The American Economic Review, 82
A. Patchett, E. Harris, E. Tristram, M. Wyvratt, M. Wu, D. Taub, E. Peterson, T. Ikeler, J. Broeke, L. Payne, D. Ondeyka, E. Thorsett, W. Greenlee, N. Lohr, R. Hoffsommer, Henry Joshua, W. Ruyle, J. Rothrock, S. Aster, A. Maycock, F. Robinson, R. Hirschmann, C. Sweet, E. Ulm, D. Gross, T. Vassil, C. Stone (1980)A new class of angiotensin-converting enzyme inhibitors
Levin Levin, Reiss Reiss (1988)Cost?reducing and Demand?creating R&D with Spillovers
Rand Journal of Economics, 19
(1974)Hypertension in man. Exposure of the renin and sodium components using angiotensin II blockade
A. Dixit (1988)A General Model of R&D Competition and Policy
The RAND Journal of Economics, 19
C. Harris, J. Vickers (1987)Racing with Uncertainty
The Review of Economic Studies, 54
Leon Dmochowski (1968)Handbuch der experimentellen Pharmakologie
Cancer Research, 28
W. Baldwin, John Scott (1987)Market Structure and Technological Change
D. Case, J. Wallace, H. Keim, M. Weber, J. Sealey, J. Laragh (1977)Possible role of renin in hypertension as suggested by renin-sodium profiling and inhibition of converting enzyme.
The New England journal of medicine, 296 12
P. Dasgupta, J. Stiglitz (1980)Uncertainty, Industrial Structure, and the Speed of R&D
The Bell Journal of Economics, 11
J. DiMasi, R. Hansen, H. Grabowski, L. Lasagna (1991)Cost of innovation in the pharmaceutical industry.
Journal of health economics, 10 2
M. Ondetti, B. Rubin, D. Cushman (1977)Design of specific inhibitors of angiotensin-converting enzyme: new class of orally active antihypertensive agents.
Science, 196 4288
M. Ondetti, N. Williams, E. Sabo, J. Pluščec, E. Weaver, O. Kocy (1971)Angiotensin-converting enzyme inhibitors from the venom of Bothrops jararaca. Isolation, elucidation of structure, and synthesis.
Biochemistry, 10 22
V. Suslow (1992)Are there better ways to spell relief? : a hedonic pricing analysis of ulcer drugs
Significant at the 1% level. * Significant at the 5% level
M. Lessnoff (1979)Capitalism, Socialism and Democracy
Political Studies, 27
Tom Lee, Louis Wilde (1980)Market Structure and Innovation: A Reformulation
Quarterly Journal of Economics, 94
F. Gross (1967)The regulation of aldosterone secretion by the renin-angiotensin system under various conditions.
K. Arrow (1962)Economic Welfare and the Allocation of Resources for Invention
William Dameshek (1941)The Pharmacological Basis of Therapeutics
H. Gavras, H. Brunner, J. Laragh, J. Sealey, I. Gavras, R. Vukovich (1974)An angiotensin converting-enzyme inhibitor to identify and treat vasoconstrictor and volume factors in hypertensive patients.
The New England journal of medicine, 291 16
D. Bono (1990)CARDIOLOGY
The Ulster Medical Journal, 52
D. Cushman, H. Cheung, E. Sabo, M. Ondetti (1977)Design of potent competitive inhibitors of angiotensin-converting enzyme. Carboxyalkanoyl and mercaptoalkanoyl amino acids.
Biochemistry, 16 25
Jennifer Reinganum (1989)The timing of innovation: Research, development, and diffusion
Handbook of Industrial Organization, 1
J. Laragh (1984)Concept of anti-renin system therapy. Historic perspective.
The American journal of medicine, 77 2A
Claude d'Aspremont-Lynden, A. Jacquemin (1988)Cooperative and Noncooperative R&D in Duopoly with Spillovers
The American Economic Review, 78
T. Khanna (1995)Racing behavior technological evolution in the high-end computer industry
Research Policy, 24
G. Fraja (1993)Strategic spillovers in patent races
International Journal of Industrial Organization, 11
P. Dasgupta, E. Maskin (1987)The Simple Economics of Research Portfolios
The Economic Journal, 97
R. Levin, P. Reiss (1988)Cost-Reducing and Demand-Creating R&D with Spillovers
J. Brown, A. Lever, J. Robertson, R. Hodge, R. Lowe, J. Vane (1967)Concurrent Measurement of Renin and Angiotensin in the Circulation of the Dog
D'Aspremont D'Aspremont, Jacquemin Jacquemin (1990)Cooperative and Noncooperative R&D in Duopoly with Spillovers: Erratum
American Economic Review, 80
F. Scherer (1992)International high-technology competition
J. Laragh, L. Baer, H. Brunner, F. Buhler, J. Sealey, E. Vaughan (1972)Renin, angiotensin and aldosterone system in pathogenesis and management of hypertensive vascular disease.
The American journal of medicine, 52 5
P. Dasgupta, J. Stiglitz (1980)Industrial Structure and the Nature of Innovative Activity
The Economic Journal, 90
F. Scherer (1967)Research and Development Resource Allocation Under Rivalry
Quarterly Journal of Economics, 81
G. Loury (1979)Market Structure and Innovation
Quarterly Journal of Economics, 93
D. Pals, F. Masucci, F. Sipos, G. Denning (1971)A Specific Competitive Antagonist of the Vascular Action of Angiotensin II
Circulation Research, 29
Jennifer Reinganum (1982)A DYNAMIC GAME OF R AND D: PATENT PROTECTION AND COMPETITIVE BEHAVIOR'
R. Henderson, I. Cockburn (1993)Scale, Scope and Spillovers: The Determinants of Research Productivity in the Pharmaceutical Industry
Innovation Law & Policy eJournal
H. Grabowski, Nevins Baxter (1973)Rivalry in Industrial Research and Development
Journal of Industrial Economics, 21
Recent advances in the theoretical literature have greatly expanded our understanding of the forces that shape the competitive dynamics of research and development, but a paucity of sufficiently detailed empirical data has left these insights relatively untested. We draw on unusually detailed qualitative and quantitative infernal data provided at the research program level by 10 major pharmaceutical firms to explore the usefulness of the modern literature as a source of insight into the dynamics of competition in ethical drug discovery. Our analysis focuses on one particularly compelling aspect of the literature: the suggestion that in “winner take all situations,” competition in R&D becomes a Prisoner's Dilemma, leading to overinvestment in research. Without adequate measures of the social return to innovation, we can say nothing about whether there is “too much” or “too little” research undertaken by the industry, but our results do not support the suggestion that R&D investment in drug discovery is driven by the “tit‐for‐tat” or simple reaction function models hinted at by the institutional literature. First, R&D investment is only weakly correlated across firms once common responses to exogenous shocks are accounted far, and second, rivals' R&D results are positively correlated with own research productivity, which we interpret as evidence for extensive R&D spillovers rather than the depletion externality implied by “winner take all” models. These results are not, of themselves, sufficient to reject the hypothesis that investment behavior in the industry is driven by strategic considerations since there is theoretical support for a wide variety of observable behavior as equilibrium outcomes of strategic interaction. Nonetheless, they suggest that the more extreme forms of rent dissipation identified in the literature are probably poor characterizations of the reality of competition in pharmaceuticals. Our results point both to the need to develop theories that incorporate richer models of possible payoff structures, adjustment costs, and firm heterogeneity and to the need to collect empirical data that is comprehensive enough to enable one to test them.
Journal of Economics & Management Strategy – Wiley
Published: Sep 1, 1994
Access the full text.
Sign up today, get DeepDyve free for 14 days.