124 research outputs found

    The intensity of competition after patent expiry in pharmaceuticals. A cross-country analysis

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    This paper shows that the relationships between the dynamics of drug priees, patent expiry, and competition by multisource drugs vary significantly across countries. A clear distinction seems to emerge. On the one side, systems that rely on market based competition (particularly the US) promote a clear distinction between firms that act as innovators and firms that act as imitators after patent expiry. Original products enjoy premium prices under patent protection, and face fierce price competition after patent expiry. On the contrary, systems that rely on administered prices (particularly France and Italy) nurture strategies of pre-emptive brand proliferation and horizontal differentiation by imitative brand name products, well before patent expiry. Our work confirms that that systems that rely on administered prices have tended to stifle price competition, to protect less efficient companies, and to encourage strategies of incremental innovation and imitation

    Global Competitiveness in Pharmaceuticals: A European Perspective

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    The report examines the competitive position of the European pharmaceutical companies and industries, and compares them with the pharmaceutical companies and industries in other parts of the world, particularly the US. Over the last two decades, the industry has experienced some important structural changes, mainly driven by technological and institutional shocks that have affected all the stages of its value chain. In turn, this has led to changes in firms' organisation and in market structure, within domestic markets, regionally, and globally. The main finding of the report is that the European industry has indeed been losing competitiveness as compared to the USA, although there are large differences and trends across European countries. As a whole, Europe is lagging behind in its ability to generate, organise, and sustain innovation processes that are increasingly expensive and organisationally complex. In fact, one conclusion of the report is that the relative position of the US as a locus of innovation in pharmaceuticals has increased over the past decade compared to Europe. All in all, the report claims that the competitiveness of the European pharmaceutical industry is negatively affected by the persistence of insufficient degrees of competition and institutional integration, still centred on domestic and fragmented health care and research systems. Four sets of variables have been found to be relevant as sources of competitiveness and growth in pharmaceuticals: 1) The size and the structure of the biomedical education and research systems; 2) Some basic institutions governing labor markets for skilled researchers and managers, as well as corporate governance and finance; 3) Intellectual property rights and patent law; 4) The institutional settings in the regulation of health care systems and, moreover, the nature and intensity of competition on the final market. The data analysed in this report come from OECD, Eurostat, the European Patent Office, IMS Health and PHID (PHarmaceutical Industry Database) at the University of Siena

    Global Competitiveness in Pharmaceuticals: A European Perspective

    Get PDF
    The report examines the competitive position of the European pharmaceutical companies and industries, and compares them with the pharmaceutical companies and industries in other parts of the world, particularly the US. Over the last two decades, the industry has experienced some important structural changes, mainly driven by technological and institutional shocks that have affected all the stages of its value chain. In turn, this has led to changes in firms' organisation and in market structure, within domestic markets, regionally, and globally. The main finding of the report is that the European industry has indeed been losing competitiveness as compared to the USA, although there are large differences and trends across European countries. As a whole, Europe is lagging behind in its ability to generate, organise, and sustain innovation processes that are increasingly expensive and organisationally complex. In fact, one conclusion of the report is that the relative position of the US as a locus of innovation in pharmaceuticals has increased over the past decade compared to Europe. All in all, the report claims that the competitiveness of the European pharmaceutical industry is negatively affected by the persistence of insufficient degrees of competition and institutional integration, still centred on domestic and fragmented health care and research systems. Four sets of variables have been found to be relevant as sources of competitiveness and growth in pharmaceuticals: 1) The size and the structure of the biomedical education and research systems; 2) Some basic institutions governing labor markets for skilled researchers and managers, as well as corporate governance and finance; 3) Intellectual property rights and patent law; 4) The institutional settings in the regulation of health care systems and, moreover, the nature and intensity of competition on the final market. The data analysed in this report come from OECD, Eurostat, the European Patent Office, IMS Health and PHID (PHarmaceutical Industry Database) at the University of Siena.Pharmaceutical Industry, R&D, Innovation, Competitiveness

    FROM GIBRAT'S LEGACY TO GIBRAT'S FALLACY. A BAYESIAN APPROACH TO STUDY THE GROWTH OF FIRMS

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    We aim at testing Gibrat's Law, a building block of the corporate growth dynamics. Using a Bayesian statistical framework that nests previous approaches, we provide evidence against Gibrat's law on average, within or across industries. Notwithstanding, data show only weak evidence of mean reversion, i.e. initial larger firms do not grow relatively slower than smaller firms. Moreover, differences in growth rates and in size steady state are persistent and firm-specific. Previous results confirming Gibrat's argument are likely to be incorrect being based on models that do not exploit appropriately all information contained in a panel data set.Gibrat's Law; Panel Data; Heterogeneity; Bayesian Estimation
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