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Do Patents Matter?: Empirical Evidence after GATT

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  • Jean O. Lanjouw
  • Iain Cockburn

Abstract

Since the late 1980s the global intellectual property rights (IPR) system has been strengthening dramatically as much of the developing world introduces patent protection for new drug products. This may lead to more research on drugs to address developing country needs. As there are identifiable differences in the drug demands of these countries as compared to those already offering such protection the situation offers a unique opportunity to examine the incentive role of patent protection. We use new survey data from India, the results of interviews with industry, government and multinational institutions, and measures of R&D activity constructed from a variety of statistical sources to determine trends in the allocation of research to products specific to developing country markets. There is some, although limited, evidence of an increase in the mid- to late 1980s which appears to have leveled off in the 1990s. In interpreting the trends we examine factors that might enhance, or dampen, a firm's responsiveness to the availability of product patents. The picture presented here provides a baseline' against which future research activity can be compared once the new global patent regime is fully established and uncertainty about its implementation is resolved.

Suggested Citation

  • Jean O. Lanjouw & Iain Cockburn, 2000. "Do Patents Matter?: Empirical Evidence after GATT," NBER Working Papers 7495, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:7495
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    References listed on IDEAS

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    1. Diwan, Ishac & Rodrik, Dani, 1991. "Patents, appropriate technology, and North-South trade," Journal of International Economics, Elsevier, vol. 30(1-2), pages 27-47, February.
    2. Deardorff, Alan V, 1992. "Welfare Effects of Global Patent Protection," Economica, London School of Economics and Political Science, vol. 59(233), pages 35-51, February.
    3. Lanjouw, J.O., 1997. "The Introduction of Pharmaceutical Product Patents in India: "Heartless Exploitation of the Poor and Suffering"?," Papers 775, Yale - Economic Growth Center.
    4. Cockburn, Iain M & Henderson, Rebecca M, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-182, June.
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    Citations

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    Cited by:

    1. Chih-Hai Yang, 2008. "Effects Of Strengthening Intellectual Property Rights In Newly Industrialized Economies: Evidence From Taiwan'S 1994 Patent Reform," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 259-275, April.
    2. Lanjouw, Jean O. & Cockburn, Iain M., 2001. "New Pills for Poor People? Empirical Evidence after GATT," World Development, Elsevier, vol. 29(2), pages 265-289, February.
    3. Sunil Kanwar & Robert Evenson, 2003. "Does intellectual property protection spur technological change?," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 235-264, April.
    4. Anne Mills, 2002. "La science et la technologie en tant que biens publics mondiaux : S'attaquer aux maladies prioritaires des pays pauvres," Revue d’économie du développement, De Boeck Université, vol. 10(1), pages 117-139.
    5. Petra Moser, 2005. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs," American Economic Review, American Economic Association, vol. 95(4), pages 1214-1236, September.
    6. Blandine LAPERCHE, 2009. "L’usage de la propriete intellectuelle dans les entreprises artisanales innovantes en France (The use of intellectual property rights in french craft enterprises)," Working Papers 221, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    7. Young-Ro Yoon, 2007. "Endogenous Timing of Actions under Conflict between Two Types of Second Mover Advantage," Caepr Working Papers 2007-013, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
    8. Davis, Lewis S. & Şener, Fuat, 2012. "Private patent protection in the theory of Schumpeterian growth," European Economic Review, Elsevier, vol. 56(7), pages 1446-1460.
    9. Bronwyn H. Hall, 2003. "Business Method Patents, Innovation, and Policy," NBER Working Papers 9717, National Bureau of Economic Research, Inc.
    10. Sami SAAFI, 2009. "Innovations technologiques, mobilité et demande de main-d’oeuvre qualifiée. Une analyse des industries tunisiennes (Technological innovations, mobility and skilled-labour deamnd : an analysis of tunis," Working Papers 206, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    11. Shih-Tse Lo, 2004. "Strenghtening Intellectual Property rights: Experience from the 1986 Taiwanese Patent Reforms," Working Papers 04004, Concordia University, Department of Economics.
    12. Yi Qian, 2011. "Counterfeiters: Foes or Friends? How Do Counterfeits Affect Different Product Quality Tiers?," NBER Working Papers 16785, National Bureau of Economic Research, Inc.
    13. Yoon, Young-Ro, 2009. "Endogenous timing of actions under conflict between two types of second mover advantage," International Journal of Industrial Organization, Elsevier, vol. 27(6), pages 728-738, November.
    14. Grieben, Wolf-Heimo & Sener, Fuat, 2009. "Globalization, rent protection institutions, and going alone in freeing trade," European Economic Review, Elsevier, vol. 53(8), pages 1042-1065, November.
    15. Yi Qian, 2010. "Are National Patent Laws the Blossoming Rain?," NBER Working Papers 16295, National Bureau of Economic Research, Inc.
    16. Clive Bell & Carsten Fink, 2005. "Aide et santé," Revue d’économie du développement, De Boeck Université, vol. 13(2), pages 135-166.
    17. Mariko Sakakibara & Lee Branstetter, 1999. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," NBER Working Papers 7066, National Bureau of Economic Research, Inc.
    18. Calestous Juma and Jayashree Watal, 2001. "Global Governance and Technology," Human Development Occasional Papers (1992-2007) HDOCPA-2001-05, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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