The pharmaceutical industry worldwide is a rapidly burgeoning industry contributing to growth of gross domestic product and employment. Technological change in this field has been very rapid, with many new products being introduced. For this reason in part, health care budgets throughout the world have increased dramatically, eliciting growing pressures for cost containment. This book explores four important issues in pharmaceutical innovations: (1) the industry structure of pharmaceutical innovation; (2) incentives for correcting market failures in allocating resources for research and development; (3) competition and marketing; and (4) public evaluation of the benefits and costs of innovation. The lessons are applicable to countries all over the world, at all levels of economic development. By discussing existing evidence this book proposes incentive arrangements to accomplish social objectives.
Includes chapters by leading authorities on the economics of pharmaceuticals, e.g. U. Reinhardt, F. Lichtenberg, H. Grabowski, E. Berndt and M. Pauly Discussions of research findings are up-to-date; many concepts are presented that will give the book a long shelf-life Presentations are not country-centric but are applicable to countries at all levels of economic development
1. Introduction Frank Sloan and Chee-Ruey Hsieh; Part I. The Industry Structure of Pharmaceutical Innovation: 2. The pharmaceutical sector in health care Uwe Reinhardt; 3. The economics of research and development in the pharmaceutical industry William Comanor; Part II. Structuring Incentives for Research and Development: 4. Drugs for neglected diseases: new incentives for innovation Aidan Hollis; 5. When patents fail: finding new drugs for the developing world Stephen M. Maurer; 6. Implementing a public subsidy for vaccines Frank Sloan and Charles Eesley; 7. Ensuring the future supply of vaccines: is a National Vaccine Authority the answer? Frank Lichtenberg; Part III. Competition and Marketing: 8. Competition between generic and branded drugs Henry Grabowski; 9. The United States experience with direct-to-consumer advertising of prescription drugs: what have we learned? Ernst Berndt; Part IV. Public Evaluation of the Benefits and Costs of Innovation: 10. Measures of costs and benefits for drugs in cost effectiveness analysis Mark Pauly; 11. Using economic evaluation in reimbursement decisions for health technologies: lessons from international experience Michael Drummond; 12. Pharmaceutical spending and health outcomes Pierre Cremieux, Denise Jarvinen, Genia Long and Phi Merrigan; 13. Pharmaceutical innovation and health outcomes: empirical evidence from Taiwan Chee-Ruey Hsieh, Kuang-Ta Vance Lo, Yichen Hong and Ya-Chen Tina Shih; 14. Conclusions and policy implications Frank A. Sloan and Chee-Ruey Hsieh.
