| Abstract: |
Analysis of the timing of launches of 642 new drugs in 76 countries during
1983-2002 shows that patent and price regulation regimes strongly affect how
quickly new drugs become commercially available in different countries. Price
regulation delays launch, while longer and more extensive patent rights
accelerate it. Health policy institutions and economic and demographic factors
that make markets more profitable also speed up diffusion. The estimated
effects are generally robust to controlling for endogeneity of policy regimes
with country fixed effects and instrumental variables. The results highlight
the important role of policy choices in driving the diffusion of new
innovations. |