Entry and the number of firms in the Swedish pharmaceuticals market

This paper analyses the factors that determine entry into the Swedish pharm aceuticals market. The analysis is based on panel data for 22 different sub stances covering the years 1972 to 1996. The results show that profit oppor tunities in a particular market have a positive impact on entry. In additio n, there is some evidence suggesting that the length of the patent protecti on period has a negative impact on entry.