alt Hacker NewsYou spend billions to get a drug from concept to approval - and then once you've invested all that money, someone else can just sell it too, free loading on all the studies you ran? Why would anyone invest in drug studies?
I need a bit more depth and detail to believe that this doesn't destroy the pharma industry.
What would the empirical evidence even look like? It's not like the modern pharma industry existed before patents.
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> Why would anyone invest in drug studies?
To make a shit ton of money. These things are insanely profitable. Generics exist and they're still profitable. You can get 99% of drugs from over seas and they're still profitable. These companies make trillions of dollars over the years. Yes, they might make slightly less money, but they still would be making a shit ton of money.
This may surprise capitalists but people genuinely want to make the world a better place, let's not act like the only human desire we have is to accumulate wealth.
If the current iteration of pharma companies refuse to share society progress with all humans, we can create different pharma companies that build drugs for the public good rather than the private benefit.
The book goes into quite a bit of depth if it is a topic that interests you.
I would flag that we’re getting into “prove a negative” territory here: the goalpost is that we need to prove empirically that patents achieve the desired outcome. If the scenario you describe accounts for all game-theory/incentive/complex-adaptive-system universes, we should see this reflected in the data.
When it comes to pharmaceuticals, they looked into Italy and Switzerland who switched to a patent system in 1978 (and I believe Portugal in the 1990s). They looked at the growth curves of things like # of inventions, total factor productivity, percentage R&D spending, and the conclusion was that there was no statistically significant change in trajectory that would suggest the introduction of the patents had any positive effects. (Edit: they accounted for domestic/international + US filings before/after as well).