Replication data for: Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials
- Budish, Eric
- Roin, Benjamin N.
- Williams, Heidi
AbstractWe investigate whether private research investments are distorted away from long-term projects. Our theoretical model highlights two potential sources of this distortion: short-termism and the fixed patent term. Our empirical context is cancer research, where clinical trials -- and hence, project durations -- are shorter for late-stage cancer treatments relative to early-stage treatments or cancer prevention. Using newly constructed data, we document several sources of evidence that together show private research investments are distorted away from long-term projects. The value of life-years at stake appears large. We analyze three potential policy responses: surrogate (non-mortality) clinical-trial endpoints, targeted R&D subsidies, and patent design. (JEL D92, G31, I11, L65, O31, O34)
Is supplement to
DOI: 10.1257/aer.20131176 (Text)
Budish, Eric, Benjamin N. Roin, and Heidi Williams. “Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials.” American Economic Review 105, no. 7 (July 2015): 2044–85. https://doi.org/10.1257/aer.20131176.
- ID: 10.1257/aer.20131176 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06