Investments in Pharmaceuticals Before and After TRIPS

Abstract The TRIPS Agreement, which specifies minimum levels of intellectual property protection for countries in the WTO, has increased levels of patent protection around the world. Using variation across countries in the timing of patent laws and the severity of disease, we test the hypothesis that increased patent protection results in greater drug development effort. We find that patent protection in wealthy countries is associated with increases in R&D effort. However, the introduction of patents in developing countries has not been followed by greater R&D investment in the diseases that are most prevalent there.

[1]  H. Grabowski,et al.  Developing drugs for developing countries. , 2006, Health affairs.

[2]  Henry G. Grabowski,et al.  R&D Costs and Returns by Therapeutic Category , 2004 .

[3]  W. Jack,et al.  Financing pharmaceutical innovation : how much should poor countries contribute? , 2005 .

[4]  Brent B. Allred,et al.  Patent rights and innovative activity: evidence from national and firm-level data , 2007 .

[5]  Differential Pricing for Pharmaceuticals: Reconciling Access, R&D and Patents , 2003 .

[6]  Michael Kremer,et al.  Creating Markets for New Vaccines. Part I: Rationale , 2000, Innovation Policy and the Economy.

[7]  B. Loff.  No agreement reached in talks on access to cheap drugs , 2002, The Lancet.

[8]  A. McGahan,et al.  Business-Model Innovation: General Purpose Technologies and their Implications for Industry Structure , 2010 .

[9]  P. Goldberg,et al.  Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India , 2003, The American economic review.

[10]  Michael Kremer,et al.  Pharmaceuticals and the developing world. , 2002, The journal of economic perspectives : a journal of the American Economic Association.

[11]  G. Velásquez,et al.  Has the implementation of the TRIPS Agreement in Latin America and the Caribbean produced intellectual property legislation that favours public health? , 2004, Bulletin of the World Health Organization.

[12]  David Belk,et al.  The Pharmaceutical Industry , 1965, Nature.

[13]  Daron Acemoglu,et al.  Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry , 2003 .

[14]  R. Glennerster,et al.  A World Bank vaccine commitment. , 2000 .

[15]  J. Kohler.  Reflections on Pills and Poverty , 2007 .

[16]  J. Lanjouw.  Forthcoming in : Innovation Policy and the Economy . Vol . 3 . 2002 . But Still a Draft Intellectual Property and the Availability of Pharmaceuticals in Poor Countries , 2002 .

[17]  J. C. Cohen.  Expanding drug access in Brazil: lessons for Latin America and Canada. , 2006, Canadian journal of public health = Revue canadienne de sante publique.

[18]  Josh Lerner,et al.  Stronger Protection or Technological Revolution: What is Behind the Recent Surge in Patenting? , 1997 .

[19]  Intan Hamdan.  How Compliant are Developing Countries with Their TRIPS Obligations? , 2009 .

[20]  H. Grabowski.  Patents, Innovation and Access to New Pharmaceuticals , 2002 .

[21]  R. W. Hansen,et al.  Setting the record straight on setting the record straight: Response to the Light and Warburton rejoinder , 2005 .

[22]  K. Maskus.  PARALLEL IMPORTS IN PHARMACEUTICALS : IMPLICATIONS FOR COMPETITION AND PRICES IN , 2001 .

[23]  G. Fauconneau,et al.  International Technology Transfer. , 1969 .

[24]  J. C. Cohen,et al.  The dilemma of intellectual property rights for pharmaceuticals: the tension between ensuring access of the poor to medicines and committing to international agreements. , 2003, Developing world bioethics.

[25]  Walter G. Park,et al.  DETERMINANTS OF PATENT RIGHTS : A CROSS-NATIONAL STUDY , 1997 .

[26]  Xuan Li.  The Impact of Higher Standards in Patent Protection for Pharmaceutical Industries under the TRIPS Agreement - A Comparative Study of China and India , 2008 .

[27]  Richard R. Nelson,et al.  On limiting or encouraging rivalry in technical progress: The effect of patent scope decisions , 1994 .

[28]  F. Lichtenberg,et al.  Does Misery Love Company? Evidence from Pharmaceutical Markets Before and after the Orphan Drug Act , 2003 .

[29]  Lee G. Branstetter,et al.  Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U.S. Firm-Level Panel Data , 2004 .

[30]  Intan Hamdan-Livramento.  How compliant are developing countries with their TRIPS obligations , 2009 .

[31]  J. Guzman,et al.  The New Landscape of Neglected Disease Drug Development , 2005 .

[32]  A. Arora,et al.  Markets for Technology: The Economics of Innovation and Corporate Strategy , 2004 .

[33]  Amy N. Finkelstein.  Static and Dynamic Effects of Health Policy: Evidence from the Vaccine Industry , 2004 .

[34]  Phillip McCalman.  Reaping What You Sow: An Empirical Analysis of International Patent Harmonization , 1999 .

[35]  E. Kitch,et al.  The Nature and Function of the Patent System , 1977, The Journal of Law and Economics.

[36]  P. Dubois,et al.  Market Size and Pharmaceutical Innovation , 2011 .

[37]  M. Westerhaus,et al.  How Do Intellectual Property Law and International Trade Agreements Affect Access to Antiretroviral Therapy? , 2006, PLoS medicine.

[38]  R. Evenson,et al.  Does Intellectual Property Protection Spur Technological Change , 2003 .

[39]  J. Guzman,et al.  Neglected Disease Research and Development: How Much Are We Really Spending? , 2009, PLoS medicine.

[40]  David Dranove,et al.  THE VERTICAL CHAIN OF RESEARCH AND DEVELOPMENT IN THE PHARMACEUTICAL INDUSTRY , 1995 .

[41]  Franco Malerba,et al.  Is the Tendency to Variation a Chief Cause of Progress , 2001 .

[42]  Mark A. Lemley,et al.  The Patent Crisis and How Courts Can Solve It , 2009 .

[43]  Colleen V. Chien.  Cheap Drugs at What Price to Innovation: Does the Compulsory Licensing of Pharmaceuticals Hurt Innovation? , 2004 .

[44]  Iain M. Cockburn,et al.  New Pills for Poor People? Empirical Evidence after GATT , 2001 .

[45]  K. Outterson,et al.  Disease-Based Limitations on Compulsory Licenses Under Articles 31 and 31bis , 2009 .

[46]  A. Arora,et al.  Ideas for rent: an overview of markets for technology , 2010 .

[47]  Yi Qian,et al.  Do National Patent Laws Stimulate Domestic Innovation in a Global Patenting Environment? A Cross-Country Analysis of Pharmaceutical Patent Protection, 19782002 , 2007, The Review of Economics and Statistics.

[48]  A. Taubman.  Rethinking Trips: ‘Adequate Remuneration’ for Non-Voluntary Patent Licensing , 2008 .