Alternative Incentives for Pharmaceutical Innovation

Intellectual Property Journal, Vol. 27, No. 1m p. 13, December 2014

51 Pages Posted: 18 Oct 2015

See all articles by Shamnad Basheer

Shamnad Basheer

National Law School of India University

Date Written: 2014

Abstract

The current patent system is muddied with manifest muck. Even those that revere its relevance for R&D intensive sectors such as pharmaceutical drugs, admit of its various failings, particularly when it comes to incentivising research into neglected diseases. A number of alternative innovation incentives have therefore been proposed. This paper highlights some of these alternatives (such as prizes and open source drug discovery) and evaluates their optimality from a policy perspective. It divides the alternative proposals into those that directly substitute for the current patent and data exclusivity regime (such as an investment protection regime) and those that cater to neglected or developing country diseases (such as advanced market commitments). Finding that almost all the alternatives suffer a shortcoming or two, it recommends the combination of multiple incentives to yield better policy outcomes.

Keywords: pharmaceutical patents, incentives, innovation, neglected diseases, investment, TRIPS, WTO

JEL Classification: O34, K10, K33

Suggested Citation

Basheer, Shamnad, Alternative Incentives for Pharmaceutical Innovation (2014). Intellectual Property Journal, Vol. 27, No. 1m p. 13, December 2014. Available at SSRN: https://ssrn.com/abstract=2675790

Shamnad Basheer (Contact Author)

National Law School of India University ( email )

Gnana Bharathi Main Road
Nagarbhavi
Bangalore, Karnataka 560242
India
9818825148 (Phone)

HOME PAGE: http://www.nls.ac.in

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