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Discussion Paper Details

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Title: Innovation Diffusion and Physician Networks: Keyhole Surgery for Cancer in the English NHS

Author(s): Eliana Barrenho, Eric Gautier, Marisa Miraldo, Carol Propper and Christiern Rose

Publication Date: December 2020

Keyword(s): Innovation, medical practice, networks and peer-effects

Programme Area(s): Public Economics

Abstract: We examine the effect of a physician network on medical innovation using novel matched patient-physician-hospital panel data. The data include every relevant physician and all patients in the English NHS for 15 years and physicians' workplace histories for more than 20. The dynamic network arising from physician mobility between hospitals over time allows us to separate unobserved physician and hospital heterogeneity from the effect of the network. We build on standard peer-effects models by adding cumulative peer behaviour and allow for particularly influential physicians ('key players'), whose identities we estimate. We find positive effects of peer innovation take-up, number of peers, and proximity in the network to both pioneers of the innovation and key players. Counterfactual estimates suggest that early intervention targeting young, connected physicians with early take-up can significantly increase aggregate take-up."

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Bibliographic Reference

Barrenho, E, Gautier, E, Miraldo, M, Propper, C and Rose, C. 2020. 'Innovation Diffusion and Physician Networks: Keyhole Surgery for Cancer in the English NHS'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15515