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Is There a Productivity Crisis in Pharmaceutical R&D?

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  • Massimo Riccaboni

Abstract

This Seminar Briefing recounts the key points made by Prof Riccaboni, from the University of Trento, at a recent OHE Lunchtime Seminar. It focuses primarily on the reasons for a decline since 2000 in the average number of new drugs launched per year by the pharmaceutical industry. Factors identified as important include a trend towards targeting more complex and difficult diseases, the need to adapt to dramatic changes in scientific knowledge and in R&D approaches, and substantial changes in both the regulatory and marketing climates. In addition to describing overall trends, Prof Riccaboni also compares the R&D performance of companies based in the US and Europe, and a set of “global” companies. He finds that the global companies rank highest on R&D productivity and equal US companies in the market value of their new drugs.

Suggested Citation

  • Massimo Riccaboni, 2012. "Is There a Productivity Crisis in Pharmaceutical R&D?," Seminar Briefing 000146, Office of Health Economics.
    • Handle: RePEc:ohe:sembri:000146
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    References listed on IDEAS

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    1. Benjamin F. Jones, 2009. "The Burden of Knowledge and the "Death of the Renaissance Man": Is Innovation Getting Harder?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(1), pages 283-317.
    2. Fabio Pammolli & Massimo Riccaboni & Laura Magazzini, 2010. "The productivity crisis in pharmaceutical R&D," Working Papers 06/2010, University of Verona, Department of Economics.
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    5. DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Is There a Productivity Crisis in Pharmaceutical R&D?;

    JEL classification:

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

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