Can Competition Hurt Innovation?

Ben Miller January 8, 2015
January 8, 2015

We need to ensure that pharmaceutical companies that invest smartly in new research are able to survive not by getting lucky but by having a diversified drug portfolio and sufficient continued revenue from past successes. By driving down profits, competition can decrease innovation by diminishing potential rewards. Policymakers should be wary of adverse side effects when sacrificing pharmaceutical profits for consumer welfare.