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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 La Croix

    () (Department of Economics, University of Hawaii at Manoa)

Abstract

We use dynamic panel data regressions to investigate whether the strength of a country’s patent protection for pharmaceuticals is associated with more pharmaceutical patenting by its residents and corporations in the United States. Using the Pharmaceutical Intellectual Property Protection (PIPP) Index to measure patent strength, we run dynamic probit and Poisson regressions on panels from 25 developing and 41 developed countries over the 1970-2004 period. Results vary, depending on whether we examine partial effects at the mean or average partial effects for the PIPP Index. APEs for the PIPP Index are positive but statistically insignificant in both developed and developing country samples.

Suggested Citation

  • Ming Liu & Sumner La Croix, 2014. "The Impact of Stronger Property Rights in Pharmaceuticals on Innovation in Developed and Developing Countries," Working Papers 201407, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:201407
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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.

    More about this item

    Keywords

    Patent; pharmaceutical; innovation; TRIPS; intellectual property;

    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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