TRIPS and knowledge diffusion from low‐ and middle‐income countries

Research Summary We examine a significant yet underappreciated effect of IPR implementation: the dissemination after TRIPS implementation of established scientific knowledge from low‐ and middle‐income countries (LMICs) into the global scientific system of pharmaceutical development. The staggered implementation of the policy allows identification of increased diffusion of pre‐existing LMIC knowledge on global diseases into the global corporate invention pipeline. For neglected diseases, the uptake remains in academic science. Other results demonstrate institutional effects in the scientific communities in LMICs through increases in scientific productivity, cross‐border collaborations, and scientist mobility. These and other results recast TRIPS’ impact as sensitive to the incentives of global corporations and institutionally significant for LMICs. We discuss implications for research on innovation strategy. Managerial Summary The implementation in an LMIC of an intellectual‐property system (e.g., of patents) carries implications for dissemination of pre‐existing scientific knowledge from the implementing country into the global scientific system. Corporate invention more intensively incorporates pre‐existing LMIC knowledge when the subject is global diseases such as cardiovascular conditions and cancer. However, when the subject is neglected diseases such as infectious conditions, the significant uptake remains in academic science. Overall, this research suggests that the implementation of patent and other intellectual‐property protections influences the integration of LMIC science into the global system differentially based on the relevance for global commercialization.