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Global spread of pharmaceutical patent protections: micro evidence from the international equivalents of the drug patents in Japan

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  • OKADA, Yoshimi
  • NAGAOKA, Sadao

Abstract

We investigate the global spread of pharmaceutical patent protections as acquired by firms, based on a novel global patent database for all significant medical drugs introduced in Japan. It gives us the propensity of filing and grant rate for each country for the granted patents in Japan. Major findings are the following. Both the filing propensity to and the grant rate of major Asian countries approached those of the OECD economies by the early 2000s for chemical substance inventions. However, there still exists substantial heterogeneity with respect to the other drug inventions: crystal, use, formulation or combination, suggesting a significant future room for international harmonization of patent granting standard. We found clear evidence for policy impact on the spread of protections for the two largest non-OECD economies. The Patent Law reform in China in 1993 had an immediate and significant impact on patent filing propensity to China (25 percentage points increase) well before it becoming a WTO member in late 2001. Furthermore, the mailbox application system in India had a substantial effect: the filing propensity reached 80 percent of the number of corresponding EP patent applications around year 2000, well before the year of TRIPS implementation for drug patents.

Suggested Citation

  • 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.
  • Handle: RePEc:hit:iirwps:16-07
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/28017/1/070iirWP16-07.pdf
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    References listed on IDEAS

    as
    1. Mark Duggan & Craig Garthwaite & Aparajita Goyal, 2016. "The Market Impacts of Pharmaceutical Product Patents in Developing Countries: Evidence from India," American Economic Review, American Economic Association, vol. 106(1), pages 99-135, January.
    2. Iain M. Cockburn & Jean O. Lanjouw & Mark Schankerman, 2016. "Patents and the Global Diffusion of New Drugs," American Economic Review, American Economic Association, vol. 106(1), pages 136-164, January.
    3. Margaret K. Kyle & Anita M. McGahan, 2012. "Investments in Pharmaceuticals Before and After TRIPS," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1157-1172, November.
    4. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    5. Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
    6. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, Oxford University Press, vol. 121(1), pages 321-349.
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    More about this item

    Keywords

    pharmaceutical patent; chemical substance patent; TRIPS Agreement; India; China; propensity of patent filing; grant rate;

    JEL classification:

    • 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
    • K29 - Law and Economics - - Regulation and Business Law - - - Other

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