Innovation in the Pharmaceutical Industry
New Evidence on Structure, Process, and Outcomes
About This Event

Presidential and congressional candidates are now offering several new policy proposals that would affect the pharmaceutical industry. Most of these would attempt to control the price of pharmaceutical products or affect prices by increasing the supply of imported or reimported products. One of the principal policy issues raised by the proposals is the effect they would have on the industry’s incentives to discover and develop new products. While some argue that these plans would have devastating effects on industry R&D, others contend that the industry will maintain a vigorous effort to develop new drugs even with reduced revenues.

In order to provide background for this policy debate, this health policy discussion will present three new academic studies about the research and development process in the pharmaceutical and biotechnology industry. These studies shed new light on the risks and rewards of R&D and the effects of changing economic conditions on the performance and structure of the industry. Two industry executives and one academic, all with a lifetime of experience in studying or participating in the R&D process will comment on the studies.


8:45 a.m.



Opening Remarks:

Robert B. Helms, AEI


Joseph A. DiMasi, Tufts University

Henry G. Grabowski, Duke University

Hannah E. Kettler, AEI and the Office of Health Economics


Erol Caglarcan, Johnson & Johnson

Frederic M. Scherer, Harvard University

Bennett M. Shapiro, Merck Research Laboratories



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Henry G.


Robert B.
  • Robert B. Helms has served as a member of the Medicaid Commission as well as assistant secretary for planning and evaluation and deputy assistant secretary for health policy at the U.S. Department of Health and Human Services (HHS). An economist by training, he has written and lectured extensively on health policy and health economics, including the history of Medicare, the tax treatment of health insurance, and compared international health systems. He currently participates in the Health Policy Consensus Group, an informal task force that is developing consumer-driven health reforms. He is the author or editor of several AEI books on health policy, including Medicare in the Twenty-First Century: Seeking Fair and Efficient Reform and Competitive Strategies in the Pharmaceutical Industry.
  • Phone: 2028625877
  • Assistant Info

    Name: Kelly Funderburk
    Phone: 202.862.5855
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