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Intellectual property, pharmaceutical MNEs and the developing world

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  • Ghauri, Pervez N.
  • Rao, P.M.
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    Abstract

    The paper examines the structure of pharmaceutical R&D funding, spillovers and public-private-academic research linkages in the developing countries. The paper also examines several policy options aimed at mitigating the trade off between the twin and often conflicting objectives of preserving incentives for the multinational enterprise (MNE) innovation and making patented drugs accessible to the poor countries at affordable prices. The paper argues for a vastly expanded size and scope of public-academic-nonprofit funding of R&D, whose results could become a global public good. Finally, the paper suggests that the international business scholars further explore the implications of the strong private-public-academic linkages found in the pharmaceutical research combined with the trends towards open innovation and economic development.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 44 (2009)
    Issue (Month): 2 (April)
    Pages: 206-215

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    Handle: RePEc:eee:worbus:v:44:y:2009:i:2:p:206-215

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    Related research

    Keywords: Innovation Intellectual property Pharmaceuticals The developing world;

    References

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    1. Buller, Paul F. & McEvoy, Glenn M., 1999. "Creating and sustaining ethical capability in the multi-national corporation," Journal of World Business, Elsevier, vol. 34(4), pages 326-343, January.
    2. Sanjaya Lall and Manuel Albaladejo, . "Indicators of the Relative Importance of IPRs In Developing Countries," QEH Working Papers qehwps85, Queen Elizabeth House, University of Oxford.
    3. Peter J Buckley & M Casson, 2003. "The Future of the Multinational Enterprise in retrospect and in prospect," Journal of International Business Studies, Palgrave Macmillan, vol. 34(2), pages 219-222, March.
    4. Jean O. Lanjouw, 2005. "Patents, Price Controls, and Access to New Drugs: How Policy Affects Global Market Entry," NBER Working Papers 11321, National Bureau of Economic Research, Inc.
    5. Nancy T. Gallini, 2002. "The Economics of Patents: Lessons from Recent U.S. Patent Reform," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 131-154, Spring.
    6. Jean O. Lanjouw, 2003. "Intellectual Property and the Availability of Pharmaceuticals in Poor Countries," NBER Chapters, in: Innovation Policy and the Economy, Volume 3, pages 91-130 National Bureau of Economic Research, Inc.
    7. Pisano, Gary, 2006. "Profiting from innovation and the intellectual property revolution," Research Policy, Elsevier, vol. 35(8), pages 1122-1130, October.
    8. Forero-Pineda, Clemente, 2006. "The impact of stronger intellectual property rights on science and technology in developing countries," Research Policy, Elsevier, vol. 35(6), pages 808-824, July.
    9. Jean O. Lanjouw, 2005. "Patents, Price Controls and Access to New Drugs: How Policy Affects Global Market Entry," Working Papers 61, Center for Global Development.
    10. Mowery, David C. & Nelson, Richard R. & Sampat, Bhaven N. & Ziedonis, Arvids A., 2001. "The growth of patenting and licensing by U.S. universities: an assessment of the effects of the Bayh-Dole act of 1980," Research Policy, Elsevier, vol. 30(1), pages 99-119, January.
    11. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
    12. Michael Kremer, 2002. "Pharmaceuticals and the Developing World," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 67-90, Fall.
    13. Ernst R. Berndt, 2002. "Pharmaceuticals in U.S. Health Care: Determinants of Quantity and Price," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 45-66, Fall.
    14. DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
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    Cited by:
    1. Yang, Deli & Sonmez, Mahmut, 2013. "Integration and divergence of patent systems across national and international institutions," Journal of World Business, Elsevier, vol. 48(4), pages 527-538.

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