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Pharmaceutical innovation; Technological change; Health policy

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Market incentives and pharmaceutical innovation
Journal of Health Economics, 06/05/08

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Free Abstract

Yin W et al. - Among more prevalent rare diseases, the ODA led to a significant and sustained increase in new trials. The impact for less prevalent rare diseases was limited to an increase in the stock of drugs. Tax credits can stimulate R&D; yet because they leave revenue margins unaffected, tax credits appear to have a more limited impact on private innovation in markets with smaller revenue potential.

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