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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.

Suggested Citation

  • 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.
    • Handle: RePEc:hai:wpaper:201116
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    Cited by:

    1. Ming Liu & Sumner la Croix, 2013. "A Cross-Country Index of Intellectual Property Rights in Pharmaceutical Innovations," Working Papers 201313, University of Hawaii at Manoa, Department of Economics.
    2. Margaret Kyle & Yi Qian, 2014. "Intellectual Property Rights and Access to Innovation: Evidence from TRIPS," NBER Working Papers 20799, National Bureau of Economic Research, Inc.
    3. Liu, Ming & La Croix, Sumner, 2015. "A cross-country index of intellectual property rights in pharmaceutical inventions," Research Policy, Elsevier, vol. 44(1), pages 206-216.
    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. 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.

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    More about this item

    Keywords

    Patent; pharmaceutical; GMM; instrument; innovation; TRIPS;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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