Data-Driven Health Innovation and Privacy Regulation
-
Chiara Conti
Abstract
Data-driven health innovation may lead to develop targeted treatments using health data. We consider privacy-sensitive patients who may decide to share personal health data if compensated. Each patient does not internalize the impact of sharing data on drug innovation. We show that investment incentives in targeted treatments are too weak as long as such innovation has a public good nature so that patients can free ride on sharing health data. Then, privacy protection measures reducing data sharing risks can promote pharmaceutical R&D and social welfare.
Funding source: Agence Nationale de la Recherche (ANR)
Award Identifier / Grant number: TEPREME project (ANR–21–CE26–0014–01)
Funding source: Sapienza University of Rome
Award Identifier / Grant number: RP120172B96CC6F4
Acknowledgment
We acknowledge financial support from Agence Nationale de la Recherche (ANR) – TEPREME project (ANR–21–CE26–0014–01) and Sapienza University of Rome (grant: RP120172B96CC6F4).
References
Antoñanzas, F., C. A. Juárez-Castelló, and R. Rodríguez-Ibeas. 2015. “Some Economics on Personalized and Predictive Medicine.” The European Journal of Health Economics 16: 985–94. https://doi.org/10.1007/s10198-014-0647-8.Search in Google Scholar
Bardey, D., A. Bommier, and B. Jullien. 2010. “Retail Price Regulation and Innovation: Reference Pricing in the Pharmaceuticals Industry.” Journal of Health Economics 29: 303–16. https://doi.org/10.1016/j.jhealeco.2009.11.015.Search in Google Scholar
Barigozzi, F., and I. Jelovac. 2020. “Research Funding and Price Negotiation for New Drugs.” Health Economics 29: 83–96. https://doi.org/10.1002/hec.4113.Search in Google Scholar
Brekke, K. R., D. M. Dalen, and O. R. Straume. 2022. “Competing with Precision: Incentives for Developing Predictive Biomarker Tests.” NHH Discussion Paper, 06/22.10.2139/ssrn.4075756Search in Google Scholar
Conti, C., and P. Reverberi. 2021. “Price Discrimination and Product Quality under Opt-In Privacy Regulation.” Information Economics and Policy 55: 100912. https://doi.org/10.1016/j.infoecopol.2020.100912.Search in Google Scholar
EC–European Commission. 2020. “A European Strategy for Data.” COM(2020), 66 final.Search in Google Scholar
EC–European Commission. 2022. “A European Health Data Space: Harnessing the Power of Health Data for People, Patients and Innovation.” COM(2022), 196 final.Search in Google Scholar
Gavan, F. P., A. J. Thompson, and K. Payne. 2018. “The Economic Case for Precision Medicine.” Expert Review of Precision Medicine and Drug Development 3: 1–9. https://doi.org/10.1080/23808993.2018.1421858.Search in Google Scholar
Gonzalez, P., I. Macho-Stadler, and D. Perez-Castrillo. 2016. “Private versus Social Incentives for Pharmaceutical Innovation.” Journal of Health Economics 50: 286–97. https://doi.org/10.1016/j.jhealeco.2015.12.003.Search in Google Scholar
Lefouili, Y., L. Madio, and Y. L. Toh. 2023. “Privacy Regulation and Quality-Enhancing Innovation.” The Journal of Industrial Economics, https://doi.org/10.2139/ssrn.4506331.Search in Google Scholar
Matteucci, G., and P. Reverberi. 2017. “Drug Innovation, Price Controls, and Parallel Trade.” International Journal of Health Economics and Management 17: 159–79. https://doi.org/10.1007/s10754-016-9205-5.Search in Google Scholar
Miller, A. R., and C. Tucker. 2018. “Privacy Protection, Personalized Medicine and Genetic Testing.” Management Science 64: 4648–68. https://doi.org/10.1287/mnsc.2017.2858.Search in Google Scholar
Mougeot, M., and F. Naegelen. 2022. “Incentives to Implement Personalized Medicine Under Second-Best Pricing.” Health Economics 31: 2411–24, https://doi.org/10.1002/hec.4588.Search in Google Scholar
Stern, A. D., B. M. Alexander, and A. Chandra. 2017. “How Economics Can Shape Precision Medicines.” Science 355: 1131–3. https://doi.org/10.1126/science.aai8707.Search in Google Scholar
© 2023 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- Frontmatter
- Research Articles
- Gender Differences and Firm Performance: Evidence from India
- The Effect of Soft Skills on Academic Outcomes
- Search and Matching in Political Corruption
- The New Form Agency Problem: Cooperation and Circular Agency
- Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus
- Active Labour Market Policies: What Works for the Long-Term Unemployed?
- Does Abolishing a Copayment Increase Doctor Visits? A Comparative Case Study
- An Experimental Analysis of Patient Dumping Under Different Payment Systems
- Does Excellence Pay Off? Evidence from the Italian Wine Market
- Letters
- Estimating the Socio-Economic Status of the U.S. Capitol Insurrectionists
- The Effect of Elevating the Supplemental Poverty Measure on Government Program Eligibility and Spending
- Data-Driven Health Innovation and Privacy Regulation
Articles in the same Issue
- Frontmatter
- Research Articles
- Gender Differences and Firm Performance: Evidence from India
- The Effect of Soft Skills on Academic Outcomes
- Search and Matching in Political Corruption
- The New Form Agency Problem: Cooperation and Circular Agency
- Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus
- Active Labour Market Policies: What Works for the Long-Term Unemployed?
- Does Abolishing a Copayment Increase Doctor Visits? A Comparative Case Study
- An Experimental Analysis of Patient Dumping Under Different Payment Systems
- Does Excellence Pay Off? Evidence from the Italian Wine Market
- Letters
- Estimating the Socio-Economic Status of the U.S. Capitol Insurrectionists
- The Effect of Elevating the Supplemental Poverty Measure on Government Program Eligibility and Spending
- Data-Driven Health Innovation and Privacy Regulation
