Corvinus
Corvinus

Determinants of pharmaceutical innovation diffusion: social contagion and prescribing characteristics

Lublóy, Ágnes and Keresztúri, Judit Lilla and Benedek, Gábor (2014) Determinants of pharmaceutical innovation diffusion: social contagion and prescribing characteristics. Working Paper. Corvinus University of Budapest Faculty of Economics, Budapest.

[img]
Preview
PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
815Kb

Abstract

This article studies the determinants of pharmaceutical innovation diffusion among specialists. To this end, it investigates the influences of six categories of factors—social embeddedness, socio-demography, scientific orientation, prescribing patterns, practice characteristics, and patient panel composition—on the use of new drugs for the treatment of type 2 diabetes mellitus in Hungary. Here, in line with international trends, 11 brands were introduced between April 2008 and April 2010, outperforming all other therapeutic classes. The Cox proportional hazards model identifies three determinants—social contagion (in the social embeddedness category) and prescribing portfolio and insulin prescribing ratio (in the prescribing pattern category). First, social contagion has a positive effect among geographically close colleagues—the higher the adoption ratio, the higher the likelihood of early adoption—but no influence among former classmates and scientific collaborators. Second, the wider the prescribing portfolio, the earlier the new drug uptake. Third, the lower the insulin prescribing ratio, the earlier the new drug uptake—physicians’ therapeutic convictions and patients’ socioeconomic statuses act as underlying influencers. However, this finding does not extend to opinion-leading physicians such as scientific leaders and hospital department and outpatient center managers. This article concludes by arguing that healthcare policy strategists and pharmaceutical companies may rely exclusively on practice location and prescription data to perfect interventions and optimize budgets.

Item Type:Monograph (Working Paper)
Series Name:Corvinus Economics Working Papers - CEWP
Series Number / Identification Number:2014/17
Uncontrolled Keywords:Cox proportional hazards model, diffusion, pharmaceutical innovations, prescribing characteristics, social contagion
JEL classification:C14 - Semiparametric and Nonparametric Methods: General
I19 - Health: Other
O33 - Technological Change: Choices and Consequences; Diffusion Processes
Subjects:Knowledge economy, innovation
Finance
Social welfare, insurance, health care
Funders:AXA Research Fund
ID Code:1727
Deposited By: Ádám Hoffmann
Deposited On:04 Nov 2014 10:27
Last Modified:04 Nov 2014 10:27

Repository Staff Only: item control page