MIT Libraries logoDSpace@MIT

MIT
View Item 
  • DSpace@MIT Home
  • MIT Open Access Articles
  • MIT Open Access Articles
  • View Item
  • DSpace@MIT Home
  • MIT Open Access Articles
  • MIT Open Access Articles
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials

Author(s)
Budish, Eric; Roin, Ben; Williams, Heidi L.
Thumbnail
DownloadWilliams_Do firms underinvest.pdf (832.5Kb)
PUBLISHER_POLICY

Publisher Policy

Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.

Terms of use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Metadata
Show full item record
Abstract
We 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.
Date issued
2015-07
URI
http://hdl.handle.net/1721.1/97906
Department
Massachusetts Institute of Technology. Department of Economics; Sloan School of Management
Journal
American Economic Review
Publisher
American Economic Association
Citation
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): 2044–2085. © American Economic Association
Version: Final published version
ISSN
0002-8282
1944-7981

Collections
  • MIT Open Access Articles

Browse

All of DSpaceCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

My Account

Login

Statistics

OA StatisticsStatistics by CountryStatistics by Department
MIT Libraries
PrivacyPermissionsAccessibilityContact us
MIT
Content created by the MIT Libraries, CC BY-NC unless otherwise noted. Notify us about copyright concerns.