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Pharmaceutical Innovation and Longevity Growth in 30 Developing and High-income Countries, 2000-2009

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  • Frank R. Lichtenberg
Abstract
I examine the impact of pharmaceutical innovation, as measured by the vintage (world launch year) of prescription drugs used, on longevity using longitudinal, country-level data on 30 developing and high-income countries during the period 2000-2009. I control for fixed country and year effects, real per capita income, the unemployment rate, mean years of schooling, the urbanization rate, real per capita health expenditure (public and private), the DPT immunization rate among children ages 12-23 months, HIV prevalence and tuberculosis incidence. The estimates indicate that life expectancy at all ages and survival rates above age 25 increased faster in countries with larger increases in drug vintage (measured in three different ways), ceteris paribus, and that the increase in life expectancy at birth due to the increase in the fraction of drugs consumed that were launched after 1990 was 1.27 years--73% of the actual increase in life expectancy at birth.

Suggested Citation

  • Frank R. Lichtenberg, 2012. "Pharmaceutical Innovation and Longevity Growth in 30 Developing and High-income Countries, 2000-2009," NBER Working Papers 18235, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:18235
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    References listed on IDEAS

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    Cited by:

    1. Frank R. Lichtenberg, 2015. "Pharmaceutical Innovation, Longevity, and Medical Expenditure in Greece, 1995-2010," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 22(2), pages 277-299, July.
    2. Peter Willemé & Michel Dumont, 2016. "Machines that go ‘ping’: Medical Technology and Health Expenditures in OECD Countries," Health Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 387-388, March.
    3. Michel Dumont & Peter Willemé, 2013. "Working Paper 02-13 - Machines that go ‘ping’: medical technology and health expenditures in OECD countries," Working Papers 1302, Federal Planning Bureau, Belgium.
    4. Szabolcs Nagy & Sergey U. Chernikov & Ekaterina Degtereva, 2022. "The Impact of the Pharmaceutical Industry on the Innovation Performance of European Countries," Papers 2212.13839, arXiv.org.

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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