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Indian Patent Policy and Public Health:Implications from the Japanese Experience

Author

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  • Aoki, Reiko
  • Kubo, Kensuke
  • Yamane, Hiroko

Abstract

The introduction of pharmaceutical product patents in India and other developing countries is expected to have a significant effect on public health and local pharmaceutical industries. This paper is an attempt to draw implications from the historical experience of Japan when it introduced product patents in 1976. In Japan, narrow patents and promotion of cross-licensing were effective tools to keep drug prices in check while ensuring the introduction of new drugs. Combined with a specially conceived health insurance scheme, this allowed the emergence of drugs for diseases that particularly affect the Japanese population. While the global pharmaceutical market surrounding India today differs considerably from that of the 1970's, the Japanese experience offers a policy option that may profitably be considered by India today. The Indian patent system emphasizes the patentability requirement in contrast to the Japanese patent policy which relied on narrow patents and extensive licensing. R & D by local firms and the development of local products may be promoted more effectively under the Japanese model.

Suggested Citation

  • Aoki, Reiko & Kubo, Kensuke & Yamane, Hiroko, 2006. "Indian Patent Policy and Public Health:Implications from the Japanese Experience," Working Papers 199, Department of Economics, The University of Auckland.
    • Handle: RePEc:auc:wpaper:199
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    File URL: http://hdl.handle.net/2292/199
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    Cited by:

    1. Xuan Li, 2008. "The Impact of Higher Standards in Patent Protection for Pharmaceutical Industries under the TRIPS Agreement – A Comparative Study of China and India," The World Economy, Wiley Blackwell, vol. 31(10), pages 1367-1382, October.
    2. Reiko Aoki, 2015. "Comment on “The Nature of Innovative Activity and the Protection of Intellectual Property in Asia”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 92-93, January.
    3. Xuan Li, 2008. "The Impact of Higher Standards in Patent Protection for Pharmaceutical Industries under the TRIPS Agreement: A Comparative Study of China and India," WIDER Working Paper Series RP2008-36, World Institute for Development Economic Research (UNU-WIDER).
    4. Mihajlo B, Jakovljevic & Nakazono, S & Ogura, S, 2014. "Contemporary generic market in Japan – key conditions to successful evolution," CIS Discussion paper series 613, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

    More about this item

    Keywords

    pharmaceutical; Economics;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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