Skip to main content

How Efficient is the Patent System? A General Appraisal and an Application to the Pharmaceutical Sector

  • Chapter
  • 329 Accesses

Abstract

In recent years, the legal protection of intellectual property through patents has faced substantial criticism from several quarters. Patents have been questioned regarding the material scope of protection (for example, the European debate about software patentability, opposing commercial software vendors and open-source advocates); the requirements for protection (patent offices, which are largely understaffed and overworked, are accused of granting an increasing number of ‘bogus’ patents, which tend to impede innovation rather than to foster it); or the incentives for protection (in complex industries firms accumulate patents for purely defensive reasons and not as a way to secure returns on their inventions). Criticisms become even harsher when it comes to pharmaceutical patents, which are accused of restricting access to essential drugs in both developed and developing countries, and for allowing pharmaceutical firms to make ‘outrageous’ profits.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Anand, B. and Galetovic, A. (2004) How Market Smarts Can Protect Property Rights, Harvard Business Review, December: 73–9.

    Google Scholar 

  • Arora, A., Ceccagnoli, M. and Cohen, W. C. (2003) R&D and the Patent Premium. NBER Working Paper 9431.

    Book  Google Scholar 

  • Barton, J. H. (2004) TRIPS and the Global Pharmaceutical Market, Health Affairs, 23: 146–54.

    Article  Google Scholar 

  • Barton, J. H. and Emanuel, E. J. (2005) The Patents-Based Pharmaceutical Development Process: Rationale, Problems, and Potential Reforms, Journal of the American Medical Association, 294: 2075–82.

    Article  Google Scholar 

  • Caillaud, B. (2003) La propriété intellectuelle sur les logiciels, in Conseil d’Analyse Economique (ed.) Propriété intellectuelle. Paris: La Documentation Française.

    Google Scholar 

  • Ceccagnoli, M. Gambardella, A. Giuri, P. Licht, G. and Mariani, M. (2005) Study on Evaluating the Knowledge Economy–What Are Patents Actually Worth? The Value of Patents for Today’s Economy and Society. Research project ETD/2004/IM/E3/77 conducted for the European Commission, Directorate-General for Internal Market. CERM Foundation (Siena).

    Google Scholar 

  • Cohen, W. M. Nelson, R. R. and Walsh, J. P. (2000) Protecting Their Intellectual Assets: Appropriability Conditions and Why US Manufacturing Firms Patent or Not, NBER Working Paper 7552.

    Google Scholar 

  • Gallini, N. (2002) The Economics of Patents: Lessons from Recent U.S. Patent Reform, Journal of Economic Perspectives, 16: 131–54.

    Article  Google Scholar 

  • Geroski, P. (1995) Markets for Technology: Knowledge, Innovation and Appropriability in P. Stoneman (ed.) Handbook of Economics of Innovation and Technological Change. Oxford: Blackwell.

    Google Scholar 

  • Grabowski, H. (2002) Patents, Innovation and Access to New Pharmaceuticals, Journal of International Economic Law, 5: 849–60.

    Article  Google Scholar 

  • Grabowski, H. (2004) Are the Economics of Pharmaceutical Research and Development Changing? Pharmaeconomics, 22: 15–24.

    Article  Google Scholar 

  • Hall, B. H. and Ziedonis, R. (2001) The Patent Paradox Revisited: An Empirical Study of Patenting in the US Semiconductor Industry, 1979–1995, RAND Journal of Economics, 32: 101–28.

    Article  Google Scholar 

  • Hammer, P. J. (2002) Differential Pricing of Essential AIDS Drugs: Markets, Politics and Public Health, Journal of International Economic Law, 5: 883–912.

    Article  Google Scholar 

  • Hardin, G. (1968) The Tragedy of the Commons, Science, 162: 1243–8.

    Article  Google Scholar 

  • Heller, M. A. and Eisenberg, R. (1998) Can Patents Deter Innovation? The Anticommons in Biomedical Research, Science, 280: 698–701.

    Article  Google Scholar 

  • Kettler, H. (2000) Narrowing the Gap between Provision and Need for Medicines in Developing Countries ( London: Office of Health Economics).

    Google Scholar 

  • Kortum, S. and Lerner, J. (1998) Stronger Protection or Technological Revolution: What is Behind the Recent Surge in Patenting? Carnegie-Rochester Conference Series on Public Policy, 48: 247–304.

    Article  Google Scholar 

  • Lanjouw, J. O. (1998) The Introduction of Pharmaceutical Product Patents in India: Heartless Exploitation of the Poor and Suffering?, Working Paper 6366, National Bureau of Economic Research.

    Google Scholar 

  • Lanjouw, J. O. (2003) A Proposed Solution yo the TRIPS Debate over Pharmaceuticals, Technological Innovation and Intellectual Property Newsletter. http://www.researchoninnovation.org/tiip/archive/20033c.html.

    Google Scholar 

  • Lerner, J. (2002) Patent Protection and Innovation over 150 Years, Working Paper. 8977, National Bureau of Economic Research.

    Google Scholar 

  • Lévêque, F. and Ménière, Y. (2004) The Economics of Patents and Copyright, ( Berkeley, CA: Electronic Press).

    Google Scholar 

  • Levin, R. C., Klevorick, A. K. Nelson, R. R. and Winter, S. G. (1987) Appropriating the Returns from Industrial R&D, Brookings Papers on Economic Activity: 783–820.

    Google Scholar 

  • Mansfield E. (1986) Patents and Innovation: an Empirical Study, Management Science, 32: 173–81.

    Article  Google Scholar 

  • OECD (2000) Competition and Regulation Issues in the Pharmaceutical Industry. DAFFE/ CLP(2000)29.

    Google Scholar 

  • OECD (2004) Compendium of Patent Statistics 2004. http://www.oecd.org/dataoecd/60/24/8208325.pdf.

    Google Scholar 

  • Penrose. E. (1951) The Economics of the International Patent System. Baltimore, MD: Johns Hopkins University Press.

    Google Scholar 

  • Ridley, D. B. Grabowski, H. G. and Moe. J. L. (2006) Developing Drugs for Developing Countries, Health Affairs, 25: 313–24.

    Article  Google Scholar 

  • Sakakibara, M. and Branstetter, L. (2001) Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms, RAND Journal of Economics, 32: 77–100.

    Article  Google Scholar 

  • Scherer, F. M. and Weisbrod, S. (1995) Economic Effects of Strengthening Pharmaceutical Patent Protection in Italy, International Review of Industrial Property and Copyright Law, 6: 1009–24.

    Google Scholar 

  • Scherer, F. M. and Watal, J. (2002) Post-TRIPS Options for Access to Patented Medicines in Developing Nations, Journal of International Economic Law, 5: 913–39.

    Article  Google Scholar 

  • Scotchmer, S. (2004) Innovation and Incentives. Cambridge, MA: MIT Press.

    Google Scholar 

  • Shapiro C. (2001) Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting, NBER/Innovation Policy and the Economy, 1: 119–50.

    Google Scholar 

  • Shavell, S. and van Ypersele, T. (2001) Rewards versus Intellectual Property Rights, Journal of Law and Economics, 44: 525–47.

    Article  Google Scholar 

  • Sykes, A. O. (2002) TRIPs, Pharmaceuticals,Developing Countries,and the Doha Solution, University of Chicago Law & Economics, Olin Working Paper 140.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2008 Paul Belleflamme

About this chapter

Cite this chapter

Belleflamme, P. (2008). How Efficient is the Patent System? A General Appraisal and an Application to the Pharmaceutical Sector. In: Gosseries, A., Marciano, A., Strowel, A. (eds) Intellectual Property and Theories of Justice. Palgrave Macmillan, London. https://doi.org/10.1057/978-0-230-58239-2_11

Download citation

Publish with us

Policies and ethics