dc.contributor.author | Budish, Eric | |
dc.contributor.author | Roin, Ben | |
dc.contributor.author | Williams, Heidi L. | |
dc.date.accessioned | 2015-07-28T17:32:07Z | |
dc.date.available | 2015-07-28T17:32:07Z | |
dc.date.issued | 2015-07 | |
dc.identifier.issn | 0002-8282 | |
dc.identifier.issn | 1944-7981 | |
dc.identifier.uri | http://hdl.handle.net/1721.1/97906 | |
dc.description.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. | en_US |
dc.language.iso | en_US | |
dc.publisher | American Economic Association | en_US |
dc.relation.isversionof | http://dx.doi.org/10.1257/aer.20131176 | en_US |
dc.rights | 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. | en_US |
dc.source | American Economic Association | en_US |
dc.title | Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials | en_US |
dc.type | Article | en_US |
dc.identifier.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 | en_US |
dc.contributor.department | Massachusetts Institute of Technology. Department of Economics | en_US |
dc.contributor.department | Sloan School of Management | en_US |
dc.contributor.mitauthor | Roin, Ben | en_US |
dc.contributor.mitauthor | Williams, Heidi L. | en_US |
dc.relation.journal | American Economic Review | en_US |
dc.eprint.version | Final published version | en_US |
dc.type.uri | http://purl.org/eprint/type/JournalArticle | en_US |
eprint.status | http://purl.org/eprint/status/PeerReviewed | en_US |
dspace.orderedauthors | Budish, Eric; Roin, Benjamin N.; Williams, Heidi | en_US |
dc.identifier.orcid | https://orcid.org/0000-0001-8246-4877 | |
dc.identifier.orcid | https://orcid.org/0000-0003-4364-1505 | |
mit.license | PUBLISHER_POLICY | en_US |
mit.metadata.status | Complete | |