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Biotechnology and the Economics of Discovery in the Pharmaceutical Industry

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  • Helen Simpson

Abstract

This paper examines the economic aspects of the forces driving the emergence of biotechnology firms, and the implications of this for the organisation of research and development (R&D) and industrial structure in the pharmaceutical industry.

Suggested Citation

  • Helen Simpson, 1998. "Biotechnology and the Economics of Discovery in the Pharmaceutical Industry," Monograph 000432, Office of Health Economics.
    • Handle: RePEc:ohe:monogr:000432
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    File URL: https://www.ohe.org/publications/biotechnology-and-economics-discovery-pharmaceutical-industry/attachment-235-1998_biotechnology_and_the_economics_simpson/
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    References listed on IDEAS

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    1. repec:bla:jfinan:v:43:y:1988:i:3:p:567-91 is not listed on IDEAS
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    4. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    5. Aghion, Philippe & Tirole, Jean, 1994. "Opening the black box of innovation," European Economic Review, Elsevier, vol. 38(3-4), pages 701-710, April.
    6. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67(3), pages 297-297.
    7. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    8. Steven Casper & Catherine Matraves, 1997. "Corporate Governance and Firm Strategy in the Pharmaceutical Industry," CIG Working Papers FS IV 97-20, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    9. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    10. Tapon, Francis & Cadsby, Charles Bram, 1996. "The optimal organization of research: evidence from eight case studies of pharmaceutical firms," Journal of Economic Behavior & Organization, Elsevier, vol. 31(3), pages 381-399, December.
    11. Gompers, Paul A, 1995. "Optimal Investment, Monitoring, and the Staging of Venture Capital," Journal of Finance, American Finance Association, vol. 50(5), pages 1461-1489, December.
    12. Franklin Allen & Douglas Gale, 1994. "A Welfare Comparison of the German and U.S. Financial Systems," Center for Financial Institutions Working Papers 94-12, Wharton School Center for Financial Institutions, University of Pennsylvania.
    13. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-379, June.
    14. Audretsch, David B & Stephan, Paula E, 1996. "Company-Scientist Locational Links: The Case of Biotechnology," American Economic Review, American Economic Association, vol. 86(3), pages 641-652, June.
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    Cited by:

    1. Office of Health Economics, 1998. "Controlling NHS Expenditure: The Impact of Labour’s NHS White Papers," Monograph 000435, Office of Health Economics.
    2. Hannah Kettler, 1998. "Competition through Innovation, Innovation through Competition," Monograph 000434, Office of Health Economics.
    3. Hannah Kettler, 1999. "Updating the Cost of a New Chemical Entity," Monograph 000456, Office of Health Economics.

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    More about this item

    Keywords

    Biotechnology and the Economics of Discovery in the Pharmaceutical Industry;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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