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Implications of Product Patents : Lessons from Japan

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  • Reiko Aoki
  • Tomoko Saiki

Abstract

Product (material) patents were introduced to Japan in 1976. We examine data prior to 1976 and years immediately following to determine the law's effect on domestic pharmaceutical market, innovation by pharmaceutical firms, and relationship of the Japanese market to the rest of the world. There is evidence that the domestic market became more concentrated and quality of pharmaceutical innovation changed after the introduction. This is because introduction of product patents is different from simple strengthening of existing technology protection such as increasing breadth.

Suggested Citation

  • Reiko Aoki & Tomoko Saiki, 2005. "Implications of Product Patents : Lessons from Japan," Hi-Stat Discussion Paper Series d05-85, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:hstdps:d05-85
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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2005/pdf/D05-85.pdf
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    References listed on IDEAS

    as
    1. Takuji Hara, 2003. "Innovation in the Pharmaceutical Industry," Books, Edward Elgar Publishing, number 2780.
    2. Sakakibara, Mariko & Branstetter, Lee, 2001. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 77-100, Spring.
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    Cited by:

    1. Yoshimi Okada & Sadao Nagaoka, 2017. "Global Spread of Pharmaceutical Patent Protection: Micro Evidence from the International Equivalents of Drug Patents in Japan," Millennial Asia, , vol. 8(1), pages 26-47, April.

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