본문 내용으로 건더뛰기

KDI 경제정보센터

ENG
  • Economic

    Information

    and Education

    Center

최신자료
Regulating the Innovators: Approval Costs and Innovation in Medical Technologies
CATO
2023.06.16
New technologies have the potential to improve our lives, but they can also cause harm. One way to mitigate harm is through regulation that requires innovators to demonstrate the safety of their products before they can be sold, which is the approach taken by the U.S. Food and Drug Administration (FDA). Another strategy relies on the threat of litigation to deter harm. A decades­?long debate considers these alternatives. Critics of regulation claim that it chills innovation and market competition by raising entry costs and that litigation is more efficient. Proponents counter that regulation fosters public confidence in products from lesser­?known firms, encouraging entry and innovation. Clear evidence testing these claims is important given the $2.8 trillion market size of FDA­?regulated products alone.