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A cost-benefit analysis of the medicines patent pool

Author

Listed:
  • Lucy Xiaolu Wang

    (University of Massachusetts Amherst; Max Planck Institute for Innovation & Competition; CCHE Canada)

Abstract

Understanding the cost and benefit of global public health institutions is important but challenging. This study provides a cost-benefit analysis of the first public health-oriented patent pooling and licensing institution, the Medicines Patent Pool (MPP), which is devoted to improving generic drug licensing and supply in low- and middle-income countries. A simple structural model of demand and supply is estimated on a dataset that covers 103 LMIC and 29 HIV drugs with data on sales, MPP licenses, patents, country-year level diseases and demographics, and institutional factors during 2007-2017. Counterfactuals are simulated in the absence of the MPP or with further expansions. The estimated benefits to consumers and firms far exceed the operating costs.

Suggested Citation

  • Lucy Xiaolu Wang, 2023. "A cost-benefit analysis of the medicines patent pool," Economics Bulletin, AccessEcon, vol. 43(3), pages 1298-1319.
    • Handle: RePEc:ebl:ecbull:eb-23-00047
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    cost-benefit analysis; Medicines Patent Pool; drug access; low and middle-income countries; structural model;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • I1 - Health, Education, and Welfare - - Health

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