This paper examines the evolution of the pharmaceutical industry. After a brief discussion of the main stylised facts about the industry, we present a history-friendly model that aims at capturing the underlining mechanisms and the logic that guides the evolution of this industry. Simulation results show the mechanisms and dynamic processes linking the patterns of innovation, demand structure, and concentration.
['Christian Garavaglia', 'Franco Malerba', 'Luigi Orsenigo', 'Michele Pezzoni']
A Simulation Model of the Evolution of the Pharmaceutical Industry: A History-Friendly Model