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Patents and the Global Diffusion of New Drugs

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  • Cockburn, Iain M
  • Lanjouw, Jean O
  • Schankerman, Mark

Abstract

This paper studies how patent rights and price regulation affect how fast new drugs are launched in different countries, using newly constructed data on launches of 642 new drugs in 76 countries for the period 1983-2002, and information on the duration and content of patent and price control regimes. Price regulation strongly delays launch, while longer and more extensive patent protection accelerates it. Health policy institutions, and economic and demographic factors that make markets more profitable, also speed up diffusion. The effects are robust to using instruments to control for endogeneity of policy regimes. The results point to an important role for patents and other policy choices in driving the diffusion of new innovations.

Suggested Citation

  • Cockburn, Iain M & Lanjouw, Jean O & Schankerman, Mark, 2014. "Patents and the Global Diffusion of New Drugs," CEPR Discussion Papers 10149, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10149
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. OKADA, Yoshimi & NAGAOKA, Sadao, 2016. "Global spread of pharmaceutical patent protections: micro evidence from the international equivalents of the drug patents in Japan," IIR Working Paper 16-07, Institute of Innovation Research, Hitotsubashi University.
    2. repec:eee:wdevel:v:99:y:2017:i:c:p:15-27 is not listed on IDEAS
    3. Patricia Laurens & Christian Le Bas & Antoine Schoen, 2018. "Worldwide IP coverage of patented inventions in large pharma firms: to what extent do the internationalisation of R&D and firm strategy matter?," Post-Print hal-01725229, HAL.
    4. Gamba, Simona, 2017. "The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector," World Development, Elsevier, vol. 99(C), pages 15-27.
    5. Carsten Fink & Bronwyn H. Hall & Christian Helmers, 2018. "Intellectual Property Use in Middle Income Countries: The Case of Chile," NBER Working Papers 24348, National Bureau of Economic Research, Inc.
    6. Max Nathan & Anna Rosso, 2017. "Innovative events," Development Working Papers 429, Centro Studi Luca d'Agliano, University of Milano, revised 09 Oct 2017.

    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K19 - Law and Economics - - Basic Areas of Law - - - Other
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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