Title: ExaminingFirm Responses to Innovation Policy: An Analysis of Pediatric Exclusivity
Author: Mary Olson and Nina Yin
Abstract: Our paper examines howfirm innovation strategies were affected by the 1997 Pediatric ExclusivityProvision. The innovation policy was adopted to incentivize pediatric studiesfor medically important drugs, but the policy design may distort firmincentives in ways that could undermine policy goals. We examine the influenceof a drug’s medical importance and total sales on FDA’s demand and firms’supply of pediatric studies. Results provide evidence of policy inefficiency.Firms prioritized pediatric studies for high revenue drugs over drugs that aremedically important to children; and pediatric studies for older drugs withless remaining patent life over newer drugs.
About Nina Yin: She is an associate professorat China Center for Human Capital and Labor Market Research
Location:Room 608, Academic Hall, CUFE