Drug patents: inefficient R & D funding
Posted by Graeme in Economics,Market failure at 11:39 am on Sunday, 4 February 2007
Patents allow pharmaceutical companies to sell drugs at several times the price they would be able to get in a competitive market. Only a small proportion of the extra money spent by the public goes into research and development (R & D), despite the latter being the supposed benefit of the higher prices. (more…)
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