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Patent Protection and Pharmaceutical R&D Spending in Canada

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  • Bohumir Pazderka

Abstract

After almost two decades of compulsory licensing of prescription drugs, Canada restored full patent protection in two legislative steps taken in 1987 and 1992. The paper investigates the impact of the strengthening of intellectual property rights on corporate R&D spending in the Canadian pharmaceutical industry. Interindustry comparisons of R&D spending trends within Canada, intercountry comparisons of R&D spending trends within the pharmaceutical industry, as well as trends in Canada's share of foreign R&D spending of US-owned multinationals suggest a statistically significant increase in Canadian pharmaceutical R&D spending after 1987.

Suggested Citation

  • Bohumir Pazderka, 1999. "Patent Protection and Pharmaceutical R&D Spending in Canada," Canadian Public Policy, University of Toronto Press, vol. 25(1), pages 29-46, March.
    • Handle: RePEc:cpp:issued:v:25:y:1999:i:1:p:29-46
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    Cited by:

    1. Gamba, Simona, 2017. "The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector," World Development, Elsevier, vol. 99(C), pages 15-27.
    2. Ming Liu & Sumner LaCroix, 2011. "The Impact of Stronger Property Rights in Pharmaceuticals on Innovation in Developed and Developing Countries," Working Papers 201116, University of Hawaii at Manoa, Department of Economics.
    3. Yi Qian, 2010. "Are National Patent Laws the Blossoming Rain?," NBER Working Papers 16295, National Bureau of Economic Research, Inc.
    4. Horbulyk, Theodore M., 2000. "Strategy And Incentives In The Compulsory Licensing Of Intellectual Property In Agriculture," Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26011, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    5. Maria Pluvia ZUNIGA & Emmanuel COMBE, 2002. "Introducing Patent Protection In The Pharmaceutical Sector:," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 16, pages 191-221.
    6. Bate, Roger & Jin, Ginger Zhe & Mathur, Aparna, 2011. "Does price reveal poor-quality drugs? Evidence from 17 countries," Journal of Health Economics, Elsevier, vol. 30(6), pages 1150-1163.

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