CAREER: Empirical Studies of Innovation in Health Care Markets

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In 2001, Nature and Science published the initial sequences of the human genome. In the decade since, the sequenced human genome has dramatically accelerated biomedical research, and has laid the groundwork for a revolution in medicine. Yet Nature's editorial page in 2001 was focused not on the scientific and medical promise of the sequenced genome, but rather on a controversy over rules governing public access to genomic data. Indeed, by many accounts biomedical researchers frequently struggle to navigate a complex landscape of non-scientific obstacles to scientific research and product development - such as negotiating access to patented and non-patented materials. Successfully translating the science of genomics into improvements in health requires resolving these economic and institutional obstacles. Intellectual merit: This project outlines a long-term agenda of research and education investigating barriers to innovation in health care markets, with a particular focus on the science and medicine of genomics. The project consists of three parts. First, it constructs a series of new datasets to measure the development and diffusion of genomic technologies, and develops open-access programs to enable others to replicate, update, and extend this data construction. Second, this project incorporates these data into a series of research projects to test and evaluate theories about economic factors that may be hindering innovation in biomedical science and health care markets. The direct goal of these studies is to shed light on specific questions, such as whether gene patents are hindering scientific research and product development. The broader goal is to develop new research designs that can subsequently be applied to other markets. Third, this project develops a monthly research workshop focused on the goal of integrating PhD students into this agenda. The goal of this workshop is to build a laboratory - generating leads on new research questions, and supporting students in collecting data and designing empirical strategies to test new hypotheses.Broader impacts: Barriers to innovation in the health policy context have important consequences for human health and welfare. In addition,, for federal and state governments, rising health care costs constitute the principal challenge of fiscal policy in the coming decades. The best available estimates suggest 30 to 40 percent of health spending - more than half a trillion dollars per year - could be eliminated with no adverse health impacts. Identifying barriers to medical innovation holds the potential to encourage the development of new technologies that can reduce health spending while also improving health outcomes.