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The Impact of Stronger Property Rights in Pharmaceuticals on Innovation in Developed and Developing Countries

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  • Ming Liu

    (Deptartment of Finance, Nankai University)

  • Sumner LaCroix

    ()
    (Department of Economics, University of Hawaii)

Abstract

An instrumental variable econometric model is specified to investigate how changes in a country’s patent protection for pharmaceutical innovations are related to patent awards from the U.S. Patent and Trademark Office to the country’s applicants. We use a new measure of patent protection for pharmaceutical innovations, the PIPP Index, to account for cross-country variation in pharmaceutical protection. Using GMM and other IV estimators, we find that stronger pharmaceutical patent protection in the applicant’s home country does not increase the number of U.S. pharmaceutical patents awarded to developed and developing country inventors.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_11-16.pdf
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Bibliographic Info

Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 201116.

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Length: 47 pages
Date of creation: 23 Nov 2011
Date of revision:
Handle: RePEc:hai:wpaper:201116

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Keywords: Patent; pharmaceutical; GMM; instrument; innovation; TRIPS;

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Cited by:
  1. 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.
  2. Ming Liu & Sumner La Croix, 2014. "A Cross-Country Index of Intellectual Property Rights in Pharmaceutical Innovations," Working Papers 201408, University of Hawaii at Manoa, Department of Economics.

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