The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector

49 Pages Posted: 23 Aug 2016

See all articles by Simona Gamba

Simona Gamba

Catholic University of the Sacred Heart of Milan - Department of Economics and Finance

Date Written: July 21, 2016

Abstract

This paper analyses the causal impact of Intellectual Property Rights (IPR) on pharmaceutical innovation in a panel of 74 countries. The identification strategy exploits the different timing across countries of two sets of IPR reforms. Domestic innovation is measured as citation-weighted domestic patents filed at the European Patent Office (EPO): to account for their distribution, count data models are used. A Zero Inated Negative Binomial model is adopted to consider the choice not to patent at the EPO. Results show that, in the short-run, IPR stimulate innovation. The effect for developing countries is roughly half of that for developed countries.

Keywords: intellectual property rights, developing countries, pharmaceutical sector, innovation, patents, TRIPS

JEL Classification: O340, O310, I180, K110

Suggested Citation

Gamba, Simona, The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector (July 21, 2016). CESifo Working Paper Series No. 6004, Available at SSRN: https://ssrn.com/abstract=2827531 or http://dx.doi.org/10.2139/ssrn.2827531

Simona Gamba (Contact Author)

Catholic University of the Sacred Heart of Milan - Department of Economics and Finance ( email )

Via Necchi 5
Milan, MI 20123
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
57
Abstract Views
655
Rank
539,187
PlumX Metrics