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Breaking the Fence: Patent Rights and Biomedical Innovation in 'Technology Followers'

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Author Info
Gehl Sampath, Padmashree () (United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology)
Abstract

The impact of patent protection on biomedical innovation has been a controversial issue. Although a "medical anti-commons" has been predicted due to a proliferation of patents on upstream technologies, evidence to test these concerns is only now emerging. However, most industrial surveys that shed light on this issue are mainly from developed countries, making it very difficult to predict the impact of patenting on biomedical innovation in developing and least developed countries. This paper develops a framework of analysis for the impact of patent rights on biomedical innovation in "technology follower" developing countries. Based on the framework developed in the paper, empirical data collected in an industry-level survey of the Indian pharmaceutical industry between November 2004 and January 2005 is used to analyze the impact of patent rights as recognized under the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS Agreement) on biomedical innovati on in technology followers.

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Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 008.

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Date of creation: 2006
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Handle: RePEc:dgr:unumer:2006008

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Related research
Keywords: intellectual property rights trade agreements TRIPS biotechnology pharmaceutical industry patents innovation

Find related papers by JEL classification:
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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    Other versions:
  2. Cohen, Wesley M. & Goto, Akira & Nagata, Akiya & Nelson, Richard R. & Walsh, John P., 2002. "R&D spillovers, patents and the incentives to innovate in Japan and the United States," Research Policy, Elsevier, vol. 31(8-9), pages 1349-1367, December. [Downloadable!] (restricted)
  3. Jerry R. Green & Suzanne Scotchmer, 1995. "On the Division of Profit in Sequential Innovation," RAND Journal of Economics, The RAND Corporation, vol. 26(1), pages 20-33, Spring. [Downloadable!] (restricted)
    Other versions:
  4. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Sunil Kanwar & Robert Evenson, 2001. "Does Intellectual Property Protection Spur Technological Change," Working Papers 831, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  6. Scherer, F M, 1972. "Nordhaus' Theory of Optimal Patent Life: A Geometric Reinterpretation," American Economic Review, American Economic Association, vol. 62(3), pages 422-27, June.
  7. Nordhaus, William D, 1969. "An Economic Theory of Technological Change," American Economic Review, American Economic Association, vol. 59(2), pages 18-28, May. [Downloadable!] (restricted)
  8. Arundel, Anthony, 2001. "The relative effectiveness of patents and secrecy for appropriation," Research Policy, Elsevier, vol. 30(4), pages 611-624, April. [Downloadable!] (restricted)
  9. William D. Nordhaus, 1969. "An Economic Theory of Technological Change," Cowles Foundation Discussion Papers 265, Cowles Foundation, Yale University. [Downloadable!]
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  11. Ramani, Shyama V., 2002. "Who is interested in biotech? R&D strategies, knowledge base and market sales of Indian biopharmaceutical firms," Research Policy, Elsevier, vol. 31(3), pages 381-398, March. [Downloadable!] (restricted)
  12. Scotchmer, Suzanne, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter. [Downloadable!] (restricted)
  13. Béatrice Dumont & Peter Holmes, 2002. "The Scope Of Intellectual Property Rights and their Interface with Competition Law and Policy: Divergent Paths to the Same Goal?," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 11(2), pages 149-162, January. [Downloadable!] (restricted)
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