Does public scientific research complement private investment in research and development in the pharmaceutical industry?

Journal of Law and Economics

Volumn 50, Issue 1, 2007, Pages 81-104

  Toole, Andrew A ^a  

^a RUTGERS UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 34249940063     PISSN: 00222186     EISSN: None     Source Type: Journal    
DOI: 10.1086/508314     Document Type: Review

References (38)

1. Abel, Andrew B., Avinash K. Dixit, Janice C. Eberly, and Robert S. Pindyck. 1996. Options, the Value of Capital, and Investment. Quarterly Journal of Economics 111:753-77.
2. American Association for the Advancement of Science. 2006. NIH Budget Remains Flat in 2007. http://www.aaas.org/spp/rd/nih07p.pdf.
3. Arora, Ashish, and Alfonso Gambardella. 1994. Evaluating Technological Information and Utilizing It. Journal of Economic Behavior and Organization 24:91-114.
4. Carruth, Alan, Andy Dickerson, and Andrew Henley. 2000. What Do We Know about Investment under Uncertainty? Journal of Economic Surveys 14:119-53.
5. Cockburn, Iain M., and Rebecca M. Henderson. 1997. Public-Private Interaction and the Productivity of Pharmaceutical Research. Working Paper No. 6018. National Bureau of Economic Research, Cambridge, Mass.
6. _. 2001. Publicly Funded Science and the Productivity of the Pharmaceutical Industry. Innovation Policy and the Economy 1:1-34.
7. Cohen, Wesley M., and D. A. Levinthal. 1989. Innovation and Learning: The Two Faces of R&D. Economic Journal 99:569-96.
8. Cohen, Wesley M., Richard R. Nelson, and John P. Walsh. 2002. Links and Impacts: The Influence of Public Research on Industrial R&D. Management Science 48:1-23.
9. Colyvas, Jeannette, Michael Crow, Annetine Gelijns, Roberto Mazzoleni, Richard R. Nelson, Nathan Rosenberg, and Bhaven N. Sampat. 2002. How Do University Inventions Get into Practice? Management Science 48:61-72,
10. David, Paul A., and Bronwyn H. Hall. 2000. Heart of Darkness: Modeling Public-Private Funding Interactions inside the R&D Black Box. Research Policy 29:1165-83.
11. David, Paul A., Bronwyn H. Hall, and Andrew A. Toole. 2000. Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence. Research Policy 29:497-529.
12. Dixit, Avinash K. 1992. Investment and Hysteresis. Journal of Economic Perspectives 6: 107-32.
13. Dixit, Avinash K., and Robert S. Pindyck, 1994. Investment under Uncertainty. Princeton, N.J.: Princeton University Press.
14. Flowers, Christopher R., and Kenneth L. Melmon. 1997. Clinical Investigators as Critical Determinants in Pharmaceutical Innovation. Nature Medicine 3:136-43.
15. Gambardella, Alfonso. 1995. Science and Innovation: The U.S. Pharmaceutical Industry in the 1980s. Cambridge, Mass.: Cambridge University Press.
16. Gelijns, Annetine C., Nathan Rosenberg, and Alan J. Moskowitz. 1998. Capturing the Unexpected Benefits of Medical Research. New England Journal of Medicine 339:693-98.
17. Giaccotto, Carmelo, Rexford E. Santerre, and John A. Vernon. 2005. Drug Prices and Research and Development Investment Behavior in the Pharmaceutical Industry. Journal of Law and Economics 48:195-214.
18. Grabowski, Henry G., and John Vernon. 1980. The Determinants of Research and Development Expenditures in the Pharmaceutical Industry. Pp. 3-20 in Drugs and Health, edited by Robert B. Helms. Washington, D.C.: AEI Press.
19. _. 2000. The Determinants of Pharmaceutical Research and Development Expenditures. Journal of Evolutionary Economics 10:201-15.
20. Guellec, Dominique, and Bruno van Pottelsberghe. 2003. The Impact of Public R&D Expenditure on Business R&D. Economics of Innovation and New Technology 12:225-44.
21. Hall, Bronwyn. Forthcoming. The Financing of Innovation. In Handbook of Technology and Innovation Management, edited by Scott Shane. Oxford: Blackwell Publishers.
22. Hall, Bronwyn H., Zvi Griliches, and Jerry A. Hausman. 1986. Patents and R&D: Is There a Lag? International Economic Review 27:265-83.
23. Henderson, Rebecca, and Iain M. Cockburn. 1996. The Determinants of Research Productivity in Ethical Drug Discovery. Pp. 167-93 in Competitive Strategies in the Pharmaceutical Industry, edited by Robert B. Helms. Washington D.C.: AEI Press.
24. Hubbard, R. Glenn. 1998. Capital Market Imperfections and Investment. Journal of Economic Literature, 36:193-225.
25. Jaffe, Adam B. 1989. The Real Effects of Academic Research. American Economic Review 79:957-70.
26. Maxwell, Robert A., and Shohreh Eckhardt. 1990. Drug Discovery: A Case Book and Analysis. Clifton, N.J.: Humana Press.
27. NIH (National Institutes of Health). Office of the Director. 1997. The NIH Director's Panel on Clinical Research: Report to the Advisory Committee to the NIH Director. http://www.nih.gov/news/crp/97report/execsum.htm.
28. _. Office of Science Policy. 2000. NIH Contributions to Pharmaceutical Development: Case Study Analysis of the Top-Selling Drugs. Appendix C in Rx R&D Myths: The Case against the Drug Industry's R&D "Scare Card." Washington, D.C.: Public Citizen, Congress Watch.
29. PhRMA (Pharmaceutical Research and Manufacturers of America). 1980-99. Annual Survey Report. Washington, D.C.: PhRMA.
30. Pindyck, Robert S. 1991. Irreversibility, Uncertainty, and Investment. Journal of Economic Literature 29:1110-48.
31. Reichert, Janice M., and Christopher-Paul Milne. 2002. Public and Private Sector Contributions to the Discovery and Development of 'Impact' Drugs. American Journal of Therapeutics 9:943-55.
32. Scherer, Frederic M. 1996. Commentary on Part Three. Pp. 269-73 in Competitive Strategies in the Pharmaceutical Industry, edited by Robert B. Helms. Washington, D.C.: AEI Press.
33. _. 2001. The Link between Gross Profitability and Pharmaceutical R&D Spending. Health Affairs 20:216-20.
34. U.S. Congress. Office of Technology Assessment. 1993. Pharmaceutical R&D: Costs, Risks and Rewards. Washington, D.C.: Government Printing Office.
35. U.S. Department of Health and Human Services. National Center for Health Statistics. 2004. International Classification of Diseases, Ninth Revision, Clinical Modification. Washington, D.C.: Government Printing Office.
36. Vernon, John A. 2005. Examining the Link between Price Regulation and Pharmaceutical R&D Investment. Health Economics 14:1-16.
37. Ward, Michael R., and David Dranove. 1995. The Vertical Chain of Research and Development in the Pharmaceutical Industry. Economic Inquiry 33:70-87.
38. Wiggins, Steven N. 1983. The Impact of Regulation on Pharmaceutical Research Expenditures: A Dynamic Approach. Economic Inquiry 21:115-28.