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Mello-Sampayo, F. de., Vale, S. de S. & Camões, F. (2013). Substitutability between drugs, innovation and growth in the pharmaceutical industry. In 10th EBES Conference Proceedings. (pp. 13-28). Istanbul: EBES.
F. D. Sampayo et al., "Substitutability between drugs, innovation and growth in the pharmaceutical industry", in 10th EBES Conf. Proc., Istanbul, EBES, 2013, pp. 13-28
@inproceedings{sampayo2013_1732358286054, author = "Mello-Sampayo, F. de. and Vale, S. de S. and Camões, F.", title = "Substitutability between drugs, innovation and growth in the pharmaceutical industry", booktitle = "10th EBES Conference Proceedings", year = "2013", editor = "", volume = "", number = "", series = "", pages = "13-28", publisher = "EBES", address = "Istanbul", organization = "EBES", url = "https://ebesweb.org/proceedings/" }
TY - CPAPER TI - Substitutability between drugs, innovation and growth in the pharmaceutical industry T2 - 10th EBES Conference Proceedings AU - Mello-Sampayo, F. de. AU - Vale, S. de S. AU - Camões, F. PY - 2013 SP - 13-28 CY - Istanbul UR - https://ebesweb.org/proceedings/ AB - This paper establishes a relationship between the elasticity of demand for pharmaceutical intermediates and the growth rate for these intermediates variety. We build a model that contains two sectors, one final good sector producing treatments, and one intermediate goods sector producing a differentiated input used in the final treatment. The effects on the medicaments varieties' growth rate of the introduction of a fiscal instrument over pharmaceutical producers' profits are discussed. When the fiscal instrument is a tax over intermediate firms' profits, R&D by firms in the pharmaceutical goods sector results in positive growth provided there is enough substitutability among intermediates assured by a patent system. Otherwise, a subsidy over pharmaceutical firms' profits should be considered to generate positive growth of innovation in medicaments. ER -