In this article it is analysed which factors determine the medical and technological advances in the field of pharmaceuticals, medical products and medical procedures. We do not have a general theory on the determinants of technological advances. That’s why all arguments, which are in discussion, are analysed for each segment. In conclusion, the pharmaceutical advances are mainly driven by the demand, the progress in medical products is driven by spill-over effects from advances in other areas of the economy and medical procedures are driven by the interest of the researching physicians in raising theirs reputation in the scientific community. These conclusions depend on the existing regulation, which is quite different between the analysed sectors. How the determinants might change when the regulations change, is shown in the outlook chapter of this article.
Journal of Economics and Statistics is a scientific journal published in Germany since 1863. The Journal publishes papers in all fields of economics and applied statistics. A specific focus is on papers combining theory with empirical analyses.