This chapter examines the role that patents play in the development of the biopharmaceutical industry. It discusses the history of patents in the U.S. and around the world. It also addresses the roles that technological standards and disruptive innovation in the biopharmaceutical market sector. It puts this into the real option reasoning perspective.
Innovation is the driver of individual biopharmaceutical firms and the market sector as a whole. Schumpeter suggests that under the neoclassical perfect competition model, the benefits of innovation ...