Stuart, Graham and Higgins, Matthew (2007): The Impact of Patenting on New Product Introductions in the Pharmaceutical Industry.
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Since Comanor and Scherer (1969), researchers have been using patents as a proxy for new product development. In this paper, we reevaluate this relationship by using novel new data. We demonstrate that the relationship between patenting and new FDA-approved product introductions has diminished considerably since the 1950s, and in fact no longer holds. Moreover, we also find that the relationship between R&D expenditures and new product introductions is considerably smaller than previously reported. While measures of patenting remain important in predicting the arrival of product introductions, the most important predictor is the loss of exclusivity protection on a current product. Our evidence suggests that pharmaceutical firms are acting strategically with respect to new product introductions. Finally, we find no relationship between firm size and new product introductions.
|Item Type:||MPRA Paper|
|Institution:||Georgia Institute of Technology|
|Original Title:||The Impact of Patenting on New Product Introductions in the Pharmaceutical Industry|
|Keywords:||Patenting; Pharmaceutical industry; New product management; Research productivity|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O30 - General|
|Depositing User:||Matthew Higgins|
|Date Deposited:||23. Aug 2007|
|Last Modified:||13. Feb 2013 09:55|
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