HealthLawProf Blog

Editor: Katharine Van Tassel
Case Western Reserve University School of Law

Wednesday, February 28, 2024

What Spurs Production and Innovation in the Vaccine Industry? Insights from Policy Interventions in the US

Myongjin Kim (University of Oklahoma), Firat Demir (University of Oklahoma), Ahmed El Fatmaoui (University of Oklahoma), Qi Ge (Vassar College), et al., What Spurs Production and Innovation in the Vaccine Industry? Insights from Policy Interventions in the US (2023):

This paper investigates the impact of supply- and demand-side policy interventions on firms' output and innovation. Leveraging a unique dataset on vaccine production and development, we evaluate the effectiveness of a tort reform, a supply-side policy intervention that reduces vaccine manufacturers' product liability, and a demand-side policy intervention, the expansion of Medicare coverage of select vaccine products. Our difference-in-differences analysis indicates that while both interventions result in significant increases in vaccine production, the impact of the demand-side policy can be 3-6 times greater in magnitude. There is also evidence suggesting that vaccine manufacturers are more likely to invest in R&D when facing the demand-side policy intervention, and the effect is likely driven by the underlying market structures.

https://lawprofessors.typepad.com/healthlawprof_blog/2024/02/what-spurs-production-and-innovation-in-the-vaccine-industry-insights-from-policy-interventions-in-t.html

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