Estimating R&D Returns In Health Care Industry
2018 26 (2) Central European Management Journal
Purpose: This paper provides an empirical evaluation of R&D returns for a series of global companies who lead in innovation within the health care industry.
Methodology: The estimation procedure bases on two specifications: the parametric production function setting, and finite distributed lag model (FDL).
Findings: Using the most recent data on R&D investment by health care equipment and services along pharmaceuticals and biotechnology companies, we confirm the positive albeit mitigated impact of R&D efforts on performance indicators (levels of sales). Moreover, we comment on the current phenomena observed in health care industry and offer a policy view for ongoing and future challenges in the sector.
Added value: Since there is a dearth of recent empirical evidence on R&D returns in the broad health industry, this paper offers the evaluation of economic incentives for companies to invest in R&D. These incentives embrace the induced increase in sales and profits levels. The authors participate in a public debate concerning the optimal levels of R&D rewards required to sustain the innovation within the sector.
Karpa, W. , & Nowakowski, J. . (2018). Estimating R&D Returns In Health Care Industry. Central European Management Journal, 26(2), 34-46. https://doi.org/10.7206/jmba.ce.2450-7814.227 (Original work published 2018)
Karpa, W. , and J. Nowakowski. “Estimating R&d Returns In Health Care Industry”. 2018. Central European Management Journal, vol. 26, no. 2, 2018, pp. 34-46.
Karpa, Waldemar , and Jakub Nowakowski. “Estimating R&d Returns In Health Care Industry”. Central European Management Journal, Central European Management Journal, 26, no. 2 (2018): 34-46. doi:10.7206/jmba.ce.2450-7814.227.