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Uptake And Diffusion Of Pharmaceutical Innovations In Health Systems

Author

Listed:
  • RIFAT A. ATUN

    (Centre for Health Management, Tanaka Business School, Imperial College London, South Kensington Campus, London, SW7 2AZ, UK)

  • IPEK GUROL-URGANCI

    (Centre for Health Management, Tanaka Business School, Imperial College London, South Kensington Campus, London, SW7 2AZ, UK)

  • DESMOND SHERIDAN

    (Department of National Heart and Lung Institute, Imperial College London and St Mary's Hospital, Norfolk Place, London, W2 1PG, UK)

Abstract

Multiple interacting factors influence the uptake and diffusion of medicines which are critical to improving health. However, there is a gap in our knowledge on how regulatory policies and other national health systems attributes combine to impact on the utilisation of innovative drugs, and health system goals and objectives.Our review demonstrates that strong regulation adversely affects, access to innovation, reduces incentives for research-based firms to develop innovative products and leads to short- and long-term welfare losses. Short-term efficiency gains from reducing pharmaceutical expenditures may actually increase total healthcare costs, reduce user choice, and in some cases, adversely affect health outcomes.Decision makers need to adopt a holistic approach to policy making, and consider potential impact of regulations on the uptake and diffusion of innovations, innovation systems and health system goals.

Suggested Citation

  • Rifat A. Atun & Ipek Gurol-Urganci & Desmond Sheridan, 2007. "Uptake And Diffusion Of Pharmaceutical Innovations In Health Systems," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 299-321.
    • Handle: RePEc:wsi:ijimxx:v:11:y:2007:i:02:n:s1363919607001709
    DOI: 10.1142/S1363919607001709
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    References listed on IDEAS

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    1. Patricia M. Danzon & Jonathan D. Ketcham, 2004. "Reference Pricing of Pharmaceuticals for Medicare: Evidence from Germany, the Netherlands, and New Zealand," NBER Chapters, in: Frontiers in Health Policy Research, Volume 7, pages 1-54, National Bureau of Economic Research, Inc.
    2. Frank R. Lichtenberg, 2007. "Benefits and costs of newer drugs: an update," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 485-490.
    3. Nina Pavcnik, 2000. "Do Pharmaceutical Prices Respond to Insurance?," NBER Working Papers 7865, National Bureau of Economic Research, Inc.
    4. Joe Tidd (ed.), 2000. "From Knowledge Management to Strategic Competence:Measuring Technological, Market and Organizational Innovation," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number p162, August.
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    Cited by:

    1. Kim Wang, 2017. "Technology Deployment By Late Movers," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-25, May.
    2. Jinkou Zhao & Marcel Lama & Eline Korenromp & Patrick Aylward & Estifanos Shargie & Scott Filler & Ryuichi Komatsu & Rifat Atun, 2012. "Adoption of Rapid Diagnostic Tests for the Diagnosis of Malaria, a Preliminary Analysis of the Global Fund Program Data, 2005 to 2010," PLOS ONE, Public Library of Science, vol. 7(8), pages 1-5, August.

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