Startseite Data-Driven Health Innovation and Privacy Regulation
Artikel
Lizenziert
Nicht lizenziert Erfordert eine Authentifizierung

Data-Driven Health Innovation and Privacy Regulation

  • Chiara Conti , Anna D’Annunzio und Pierfrancesco Reverberi EMAIL logo
Veröffentlicht/Copyright: 1. November 2023

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.

JEL Classification: L12; L51; I10

Corresponding author: Pierfrancesco Reverberi, Department of Computer, Control, and Management Engineering, Sapienza University of Rome, Roma, Italy, E-mail:

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.Suche 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.Suche 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.Suche 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.4075756Suche 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.Suche in Google Scholar

EC–European Commission. 2020. “A European Strategy for Data.” COM(2020), 66 final.Suche 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.Suche 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.Suche 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.Suche 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.Suche 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.Suche 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.Suche 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.Suche 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.Suche in Google Scholar

Received: 2023-01-20
Accepted: 2023-10-21
Published Online: 2023-11-01

© 2023 Walter de Gruyter GmbH, Berlin/Boston

Heruntergeladen am 26.9.2025 von https://www.degruyterbrill.com/document/doi/10.1515/bejeap-2023-0020/html
Button zum nach oben scrollen