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Pharmaceutical market regulation

Student: Osipova Vera

Supervisor: Liudmila S. Zasimova

Faculty: Faculty of Economic Sciences

Educational Programme: Master

Year of Graduation: 2014

The aim of this work was to analyze the impact of various socio-economic factors that affect the attractiveness of the pharmaceutical market for manufacturers, both domestic and foreign. The following problems were solved in the work: the necessity of government regulation in the functioning of the pharmaceutical market; the analysis of the works, explaining the impact of government regulation on incentives of manufacturers to the conclusion of innovative drugs. In the empirical part of the study was analyzed the impact of state policies on the attractiveness of the pharmaceutical market. The pharmaceutical markets of the countries of the Organization for Economic Cooperation and Development were chosen as object of research.The study of theoretical and empirical works has been found dependence between the features of state regulation and the number of patents on new drugs. Therefore, in this work, in the constructed models, the dependent variable is the number of patents granted in the country. In the empirical part of this work for justification government regulation were formulated two hypotheses. In the first it was supposed that government regulation has a greater influence on the appearance of new drugs than other factors; the second - there is a difference in the force of impact of factors on residents and non-residents of the country. Due to the lack of a unified database on pharmaceutical market in these countries, it was collected from different information sources. To test the formulated hypotheses three models were used in which the dependent variable is: the total number of patents granted in the country, the number of patents granted for residents and non-residents of the country.As a result of research there were no reasons to reject the hypothesis. In work it was succeeded to receive the following results. By the force of impact on the number of granted patents have: capacities for innovations in the country and the burdens of government regulation. As a result of estimation of models, it was necessary to analyze the government regulation separately for residents and non-residents of the country.

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