Global Drug Diffusion and Innovation with the Medicines Patent Pool

61 Pages Posted: 22 Mar 2022

See all articles by Lucy Xiaolu Wang

Lucy Xiaolu Wang

University of Massachusetts Amherst - Department of Resource Economics; Max Planck Institute for Innovation and Competition

Multiple version iconThere are 2 versions of this paper

Date Written: January 6, 2022

Abstract

This paper studies the impact of the first joint licensing platform for patented drugs, the Medicines Patent Pool, on global drug diffusion and innovation. The pool allows generic firms worldwide to license drug bundles cheaply and conveniently for sales in a set of developing countries. I construct a novel dataset from licensing contracts, public procurement, clinical trials, and drug approvals. Using difference-in-differences methods, I find that the pool leads to substantial increases in the generic supply of drugs purchased, particularly in countries with stronger patent protection. In addition, there are some positive increases in clinical trials and drug product approvals after a compound enters the pool, mostly by firms outside the pool.

Keywords: drug cocktails, innovation and diffusion, patent pool, developing countries

JEL Classification: O30, K20, I10

Suggested Citation

Wang, Lucy Xiaolu, Global Drug Diffusion and Innovation with the Medicines Patent Pool (January 6, 2022). Available at SSRN: https://ssrn.com/abstract=4016897 or http://dx.doi.org/10.2139/ssrn.4016897

Lucy Xiaolu Wang (Contact Author)

University of Massachusetts Amherst - Department of Resource Economics ( email )

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Max Planck Institute for Innovation and Competition ( email )

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