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Promotion, Innovation, and Health: Personalized Medicine or Comparative Effectiveness Research

  • John Vernon
  • Robert Goldberg
Reference work entry
Part of the Health Services Research book series (HEALTHSR)

Abstract

Comparative effectiveness research (CER) is a proposed response to what proponents regard as the market’s failure to produce the quantity of comparative assessments of medical technology consumer value. We discuss this claim in terms of prospect theory. We find that CER creates a different frame for making decisions about risk and gains that, in turn, changes perspectives on the expected returns and effective patent life of medical research and development. Further, we compare CER’s impact on rates of innovation to the effect of choices framed by biomarker-based information or personalized medicine has on research and development (R&D). We estimate that the shift in frames will cause a decline and loss in R&D innovation over 10 years in terms of between $38 and $74 billion and would reduce the number of 57 new products over the decade. We conservatively estimate that the foregone social value of biomarker-based innovation would be $10 trillion over 10 years.

Keywords

Cash Flow Personalized Medicine Prospect Theory Comparative Effectiveness Research Narrow Frame 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.Department of Health Policy and ManagementUniversity of North Carolina at Chapel HillChapel HillUSA
  2. 2.Center for Medicine in the Public InterestSpringfieldUSA

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