Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Murphy says mobile sensor data will allow adaptive interventions for maximizing healthy outcomes

Frey comments on why sunbelt metro area economies are still struggling

Krause says having religious friends leads to gratitude, which is associated with better health

Highlights

PSC Fall 2014 Newsletter now available

Martha Bailey and Nicolas Duquette win Cole Prize for article on War on Poverty

Michigan's graduate sociology program tied for 4th with Stanford in USN&WR rankings

Jeff Morenoff makes Reuters' Highly Cited Researchers list for 2014

Next Brown Bag

Monday, Nov 3
Melvin Stephens

The effect of advertising on pharmaceutical innovation

Publication Abstract

Kwong, W.J., and Edward Norton. 2007. "The effect of advertising on pharmaceutical innovation." Review of Industrial Organization, 31(3): 221-236.

Although there is much controversy in the economic literature about how advertising affects market competition, little is known about the effect of advertising on product innovation. We examined the relationship between advertising expenditures and the research and development activities of pharmaceutical firms using empirical data from eight therapy areas. This study finds that detailing advertising may have a significant positive effect on the number of new products entering into clinical development. Markets of chronic disease with high levels of detailing advertising were more attractive to pharmaceutical firms. However, the effect of advertising on new product novelty remains inconclusive.

DOI:10.1007/s11151-007-9146-8 (Full Text)

Browse | Search : All Pubs | Next