I suspect innovation gets shifted more than it gets reduced, and there are forces pushing innovation up.
To the extent Obamacare subsidizes medicine more than it is already subsidized, and if it has a net cost > 0, then it does, it should encourage innovation. Some of the shift and/or additional innovation will be how to game the system more effectively, which is presumably a low-value outcome for society. But some of it will be how to provide care that this system will pay for, perhaps more innovation towards the afflictions of those who will gain access to medical care that did not previously have as much access, and so on.
If it shifts money away from drug makers, but it puts in more money on net, then there is lower innovation on the drug side and higher innovation where the new profits are to be made.
To the extent Obamacare subsidizes medicine more than it is already subsidized, and if it has a net cost > 0, then it does, it should encourage innovation.
This will only happen if being innovative is favored by the subsidies and the people deciding who gets subsidies can tell improvements apart from change for the sake of change.
I suspect innovation gets shifted more than it gets reduced, and there are forces pushing innovation up.
To the extent Obamacare subsidizes medicine more than it is already subsidized, and if it has a net cost > 0, then it does, it should encourage innovation. Some of the shift and/or additional innovation will be how to game the system more effectively, which is presumably a low-value outcome for society. But some of it will be how to provide care that this system will pay for, perhaps more innovation towards the afflictions of those who will gain access to medical care that did not previously have as much access, and so on.
If it shifts money away from drug makers, but it puts in more money on net, then there is lower innovation on the drug side and higher innovation where the new profits are to be made.
This will only happen if being innovative is favored by the subsidies and the people deciding who gets subsidies can tell improvements apart from change for the sake of change.