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Economic Implications of Intellectual Property Rights for the Biotechnology Sector: A Comparative Analysis of the European-Japanese Situations

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  • Gilroy, Bernard Michael
  • Brandes, Wolfgang
  • Volpert, Tobias

Abstract

Under the assumption of similar general legal environments, the following analysis suggests that a strategy of confidential secrecy in R&D is less significant for Japanese enterprises. Founded upon this difference the amount of patent induced information disclosure effects for Japan is not as essential as it is for Europe. Consequently, the blockade effect in Japan is comparatively dominant, i.e. in Japan the negative aspects of patent protection effect the system more immediately. Thus, one might argue that less patent protection is more fruitful for Japan. Given this analysis, the current endeavours of the USA, the European Union and Japan to harmonize patent legislation for the biotechnology sector appears to be flawed.

Suggested Citation

  • Gilroy, Bernard Michael & Brandes, Wolfgang & Volpert, Tobias, 2003. "Economic Implications of Intellectual Property Rights for the Biotechnology Sector: A Comparative Analysis of the European-Japanese Situations," MPRA Paper 22200, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:22200
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    References listed on IDEAS

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    1. Bernard Gilroy & Tobias Volpert, 2002. "Economic insights and deficits in European biotechnology patent policy," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 37(3), pages 150-155, May.
    2. Richard Gilbert & Carl Shapiro, 1990. "Optimal Patent Length and Breadth," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 106-112, Spring.
    3. James Bessen & Eric Maskin, 2009. "Sequential innovation, patents, and imitation," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 611-635, December.
    4. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
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    JEL classification:

    • L0 - Industrial Organization - - General
    • F0 - International Economics - - General

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