ABSTRACT
This paper considers how Schumpeter would have tacked the problem of giving policy advice to governments about the pharmaceutical industry, singling out the UK government in particular. It would be impertinent to claim that what follows is anything more than Schumpeterian in spirit. Had he now been given the problem directly, we may be sure that he would have surprised us with new insights. He would, however, have recognised what follows as closer to his teachings than most contemporary arguments about the industry.
