Optimal Patent Policy for Pharmaceutical Industry
Izhak, Olena; Saxell, Tanja; Takalo, Tuomas (2020-05-20)
Izhak, Olena
Saxell, Tanja
Takalo, Tuomas
Valtion taloudellinen tutkimuskeskus
20.05.2020
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-274-253-7
https://urn.fi/URN:ISBN:978-952-274-253-7
Kuvaus
nonPeerReviewed
Tiivistelmä
We show how characterizing optimal patent policy for the pharmaceutical industry only requires information about generic producers’ responses to changes in the effective duration and scope of new drug patents. To estimate these responses, we use data on Paragraph IV patent challenges, and two quasi-experimental approaches: one based on changes in patent laws and another on the allocation of patent applications to examiners. We find that extending effective patent duration increases generic entry via Paragraph IV patent challenges whereas broadening protection reduces it. Our results imply that pharmaceutical patents should be made shorter but broader.
Tutkimusteema
Business regulation and international economics
JEL
I18, K20, L13, O34, O31
Avainsanat
patent policy, pharmaceuticals, generic entry, innovation, imitation
Kokoelmat
- VATT Working Papers [163]