Pharmaceutical Innovation

Thepharmaceuticalindustryworldwideisarapidlyburgeoningindustrycontributingtogrowthofgrossdomesticproductandemployment.Technologicalchangeinthisfieldhasbeenveryrapid,withmanynewproductsbeingintroduced.Forthisreasoninpart,healthcarebudgetsthroughouttheworldhaveincreaseddramatically,elicitinggrowingpressuresforcostcontainment.Thisbookexploresfourimportantissuesinpharmaceuticalinnovations:(1)theindustrystructureofpharmaceuticalinnovation;(2)incentivesforcorrectingmarketfailuresinallocatingresourcesforresearchanddevelopment;(3)competitionandmarketing;and(4)publicevaluationofthebenefitsandcostsofinnovation.Thelessonsareapplicabletocountriesallovertheworld,atalllevelsofeconomicdevelopment.Bydiscussingexistingevidencethisbookproposesincentivearrangementstoaccomplishsocialobjectives.