Advanced Search
MyIDEAS: Login to save this paper or follow this series

Are National Patent Laws the Blossoming Rain?

Contents:

Author Info

  • Yi Qian
Registered author(s):

    Abstract

    Research on the effects of patent protection on innovation and technology transfer in the cross-country pharmaceutical industry adds to our understanding of the underlying forces driving a country's innovation level. Qian (2007) constructs a comprehensive database useful for evaluating the patenting effects on pharmaceutical innovations for 26 countries that established national pharmaceutical patent laws during the period from 1978 to 2002. This paper is a companion piece that extends the research to evaluating the effects of patent reforms on inward foreign direct investment (FDI) establishments and imports in the pharmaceutical sectors. This book chapter also attempts to integrate all the findings on innovations, technology transfer, and international trade, and discuss potential policy implications. By thoroughly controlling for the country covariates, through a combination of matched sampling techniques with fixed-effect panel regression models, the analyses arrive at robust results across the various model specifications. First, national pharmaceutical patent protection alone does not stimulate domestic innovation, as estimated by the US patent awards (both raw counts and citation-weighted) and domestic R&D. FDI establishments and pharmaceutical exports did not increase significantly either. Imports, however, did flourish. Second, national patent law implementation demonstrates conditional importance for innovation acceleration and technology transfer, conditional upon certain country variables. In particular, the interaction between implementation and the development level, educational attainment, and economic freedom index are shown to have positive relationships with the domestic R&D expenditure and domestic pharmaceutical patent awards in the US. The interaction between implementation and economic freedom, implementation and educational attainment are indicated to attract more FDI establishments. Third, terms of trade is likely to decline immediately upon the new implementation of IPR.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.nber.org/papers/w16295.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16295.

    as in new window
    Length:
    Date of creation: Aug 2010
    Date of revision:
    Publication status: published as
    Handle: RePEc:nbr:nberwo:16295

    Note: PR
    Contact details of provider:
    Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Email:
    Web page: http://www.nber.org
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Harabi, N., 1993. "Appropriabiblity of Technical Innovations: An Empirical Analysis," Papers, Universitat Zurich - Wirtschaftswissenschaftliches Institut 31a, Universitat Zurich - Wirtschaftswissenschaftliches Institut.
    2. James Bessen & Eric Maskin, 2009. "Sequential innovation, patents, and imitation," RAND Journal of Economics, RAND Corporation, RAND Corporation, vol. 40(4), pages 611-635.
    3. Jean O. Lanjouw & Iain Cockburn, 2000. "Do Patents Matter?: Empirical Evidence after GATT," NBER Working Papers 7495, National Bureau of Economic Research, Inc.
    4. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
    5. Petra Moser, 2005. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs," American Economic Review, American Economic Association, American Economic Association, vol. 95(4), pages 1214-1236, September.
    6. Mariko Sakakibara & Lee Branstetter, 1999. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," NBER Working Papers 7066, National Bureau of Economic Research, Inc.
    7. Kumar, Nagesh, 1995. "Intellectual Property Protection, Market Orientation and Location of Overseas R&D Activities by Multinational Enterprises," UNU-INTECH Discussion Paper Series, United Nations University - INTECH 01, United Nations University - INTECH.
    8. Ha-Joon Chang, 2001. "Intellectual Property Rights and Economic Development: Historical lessons and emerging issues," Journal of Human Development and Capabilities, Taylor & Francis Journals, Taylor & Francis Journals, vol. 2(2), pages 287-309.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:16295. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.