Pharmaceutical Innovation
Incentives, Competition, and Cost-Benefit Analysis in International Perspective

This book reviews existing evidence and new ideas on how best to promote pharmaceutical innovation.

Frank A. Sloan (Edited by), Chee-Ruey Hsieh (Edited by)

9780521874908, Cambridge University Press

Hardback, published 30 April 2007

346 pages, 12 tables
23.6 x 16 x 2.6 cm, 0.602 kg

"The second section (chapters 4-7) provides the real meat of the book. The authors do an outstanding job of making a compelling case for formulating incentives for innovation based on societal needs." - JAMA

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.

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.

Subject Areas: Medicine: general issues [MB], Political economy [KCP], Economics [KC], Comparative politics [JPB]