New Drug Innovation and Pharmaceutical Industry Structure: Trends in the Output of Pharmaceutical Firms

This study examines what is generally regarded to be the most important measure of innovation in the pharmaceutical industry—the extent to which new drugs are developed and marketed by pharmaceutical firms. Pharmaceutical industry output, as measured by new chemical entity (NCE) approvals in the United States since the 1962 Amendments to the Federal Food, Drug, and Cosmetic Act of 1938, is examined at the firm level. This long-term historical...