What Determines the Pharmaceutical R&D Investments?
0
조회
0
다운로드
2
인용
0
참고문헌
키워드
초록
This study investigates the major determinants of R&D investment of pharmaceutical firms, and the effects of them on R&D intensity. Using a 11 year (2000~2010) panel dataset of 32 firms derived from Compustat, KISINFO, PhRMA, and JPMA, this study empirically figures out whether unregulated US pharmaceutical market has higher profitability and cash flows than its regulated counterparts. The regression results of OLS, random-effects, and fixed-effects specifications show that expected profits and lagged cash flows are major determinants of firm R&D intensity. From a comparison, US has about 4 to 7 times higher profitability effect than non-US where drug price regulation is strict.
Abstract
This study investigates the major determinants of R&D investment of pharmaceutical firms, and the effects of them on R&D intensity. Using a 11 year (2000~2010) panel dataset of 32 firms derived from Compustat, KISINFO, PhRMA, and JPMA, this study empirically figures out whether unregulated US pharmaceutical market has higher profitability and cash flows than its regulated counterparts. The regression results of OLS, random-effects, and fixed-effects specifications show that expected profits and lagged cash flows are major determinants of firm R&D intensity. From a comparison, US has about 4 to 7 times higher profitability effect than non-US where drug price regulation is strict.
참고문헌 (14)
- Congressional Budget Office, "How Increased Competition from Generic Drugs Has Affected Prices and Returns in the Pharmaceutical Industry" (1998), Congressional Budget Office
- DiMasi, J. A., "Success Rates for New Drugs Entering Clinical Testing in the United States", Clinical Pharmacology and Therapeutics, 58, pp.1~14 (1995)
- DiMasi, J. A., "Cost of Innovation in the Pharmaceutical Industry", Journal of Health Economics, 10, pp.107~142 (1991)
- DiMasi, J. A., "The Price of Innovation: New Estimates of Drug Development Costs", Journal of Health Economics, 22, pp.151~185 (2003)
- Giaccotto, C., "Drug Prices and Research and Development Investment Behavior in the Pharmaceutical Industry", Journal of Law and Economics, 48, pp.195~214 (2005)
- Grabowski, H. G., "The Determinants of Industrial Research and Development: A Study of Chemical, Drug, and Petroleum Industries", Journal of Political Economy, 76, pp.292~306 (1968)
- Grabowski, H. G., "Health Reform and Pharmaceutical Innovation" (1994), AEI Press
- Grabowski, H. G., "A New Look at the Risks and Returns to Pharmaceutical R&D", Management Science, 36(7), pp.804~821 (1990)
- Grabowski, H. G., "Returns to R&D on New Drug Introductions in the1980s", Journal of Health Economics, 13, pp.383~406 (1994)
- Grabowski, H. G., "Longer Patents for Increased Generic Competition: the Waxman-Hatch Act after One Decade", Pharmacoeconomics, 10(2), pp.110~123 (1996)
- Investment and Research and Development at the Firm Level: Does the Source of Financing Matter?, "Hall, B. H.", NBER, ~, pp.Working Paper No.4096 (1992)
- Scherer, F. M., "The Link between Gross Profitability and Pharmaceutical R&D Spending", Health Affairs, 20(5), pp.216~220 (2001)
- Vernon, J. M., "Drug Research and Price Controls", Regulation, 23(4), pp.22~25 (2003)
- Vernon, J. M., "The Relationship between Price Regulation and Pharmaceutical Profit Margins", Applied Economics Letters, 10, pp.467~470 (2003)