IDEAS home Printed from https://ideas.repec.org/a/bpj/glecon/v12y2012i4p1-19n7.html
   My bibliography  Save this article

The Optimal Timing of Compulsory Licensing: A Story of Thailand's Winter of Discontent

Author

Listed:
  • Shahnawaz Sheikh

    (California State University)

Abstract

This paper considers the timing of issuing a compulsory license on pharmaceuticals. Apart from confirming the role of basic public health concerns--such as the virulence and prevalence of the disease to be addressed--in compulsory licensing, the paper identifies key economic variables of direct concern to a revenue-maximizing government with the power to issue the license. The paper finds that a disease that threatens to reduce domestic tax revenues is likely to be met with a move toward generic manufacturing of patented drugs. A compulsory license is less likely to be issued if retaliation by trade partners endangers the domestic export sector or if foreign trade contributes significantly to government finances. Thailand’s 2006 compulsory license issue is discussed as an example supporting the implications derived from the model.

Suggested Citation

  • Shahnawaz Sheikh, 2012. "The Optimal Timing of Compulsory Licensing: A Story of Thailand's Winter of Discontent," Global Economy Journal, De Gruyter, vol. 12(4), pages 1-19, December.
    • Handle: RePEc:bpj:glecon:v:12:y:2012:i:4:p:1-19:n:7
    DOI: 10.1515/1524-5861.1903
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/1524-5861.1903
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/1524-5861.1903?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carlos Correa, 2001. "The TRIPS Agreement: How much room for maneuver?," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 2(1), pages 79-107.
    2. F. M. Scherer & Jayashree Watal, 2002. "Post-TRIPS Options for Access to Patented Medicines in Developing Nations," Journal of International Economic Law, Oxford University Press, vol. 5(4), pages 913-939, December.
    3. Bhagwati Jagdish, 2005. "From Seattle to Hong Kong: Are We Getting Anywhere?," Global Economy Journal, De Gruyter, vol. 5(4), pages 1-15, December.
    4. Margaret K. Kyle & Anita M. McGahan, 2012. "Investments in Pharmaceuticals Before and After TRIPS," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1157-1172, November.
    5. Tandon, Pankaj, 1982. "Optimal Patents with Compulsory Licensing," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 470-486, June.
    6. repec:clg:wpaper:2009-01 is not listed on IDEAS
    7. Stryszowski, P.K., 2006. "Intellectual Property Rights, Globalization and Growth," Other publications TiSEM 32aa98b3-1bd4-43d3-badb-5, Tilburg University, School of Economics and Management.
    8. Peretz, S. Michael & Vice-President, oExecutive, 1983. "Pharmaceuticals in the third world: The problem from the suppliers' point of view," World Development, Elsevier, vol. 11(3), pages 259-264, March.
    9. Eckes Alfred E., 2011. "The Seamy Side of the Global Economy," Global Economy Journal, De Gruyter, vol. 11(3), pages 1-28, September.
    10. Stryszowski Piotr K, 2006. "Intellectual Property Rights, Globalization and Growth," Global Economy Journal, De Gruyter, vol. 6(4), pages 1-33, November.
    11. Wilfred Ethier, 2004. "Intellectual Property Rights And Dispute Settlement In The World Trade Organization," Journal of International Economic Law, Oxford University Press, vol. 7(2), pages 449-457, June.
    12. Ana Revenga & Mead Over & Emiko Masaki & Wiwat Peerapatanapokin & Julian Gold & Viroj Tangcharoensathien & Sombat Thanprasertsuk, 2006. "The Economics of Effective AIDS Treatment : Evaluating Policy Options for Thailand," World Bank Publications - Books, The World Bank Group, number 7196.
    13. Antony Taubman, 2008. "Rethinking TRIPS: 'Adequate Remuneration' for Non-voluntary Patent Licensing," Journal of International Economic Law, Oxford University Press, vol. 11(4), pages 927-970, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eric W. Bond & Kamal Saggi, 2023. "Compulsory licensing, price controls, and access to patented foreign products," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 19, pages 437-448, World Scientific Publishing Co. Pte. Ltd..
    2. Borota, Teodora, 2010. "Innovation and Imitation in a Model of North-South TradeRecent evidence on world trade patterns reveals North-South specialization across," Working Paper Series 2010:6, Uppsala University, Department of Economics.
    3. Chatterjee, Chirantan & Kubo, Kensuke & Pingali, Viswanath, 2015. "The consumer welfare implications of governmental policies and firm strategy in markets for medicines," Journal of Health Economics, Elsevier, vol. 44(C), pages 255-273.
    4. Antonelli Cristiano, 2012. "Compulsory licensing: the foundations of an institutional innovation," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201207, University of Turin.
    5. Sarmah, Archita & De Giovanni, Domenico & De Giovanni, Pietro, 2020. "Compulsory licenses in the pharmaceutical industry: Pricing and R&D strategies," European Journal of Operational Research, Elsevier, vol. 282(3), pages 1053-1069.
    6. Borota, Teodora, 2012. "Innovation and imitation in a model of North–South trade," Journal of International Economics, Elsevier, vol. 87(2), pages 365-376.
    7. Briggs Kristie, 2012. "Patents, Technology Adaptation, and Exports to Developing Countries," Global Economy Journal, De Gruyter, vol. 12(1), pages 1-20, March.
    8. Kamal Saggi, 2016. "Trade, Intellectual Property Rights, and the World Trade Organization," Vanderbilt University Department of Economics Working Papers 16-00014, Vanderbilt University Department of Economics.
    9. Billette de Villemeur, Etienne & Ruble, Richard & Versaevel, Bruno, 2014. "Innovation and imitation incentives in dynamic duopoly," MPRA Paper 59453, University Library of Munich, Germany.
    10. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2023. "Intellectual property rights protection and trade: An empirical analysis," World Development, Elsevier, vol. 162(C).
    11. Michael Reksulak & William F. Shughart & Robert D. Tollison, 2008. "Innovation and the opportunity cost of monopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 619-627.
    12. Heidi L. Williams, 2016. "Intellectual Property Rights and Innovation: Evidence from Health Care Markets," Innovation Policy and the Economy, University of Chicago Press, vol. 16(1), pages 53-87.
    13. Marjit, Sugata & Beladi, Hamid, 1999. "Technology adoption and LDC firms," Research in Economics, Elsevier, vol. 53(4), pages 421-429, December.
    14. Madan Dhanora & Ruchi Sharma & Walter G. Park, 2021. "Technological Innovations and Market Power: A Study of Indian Pharmaceutical Industry," Millennial Asia, , vol. 12(1), pages 5-34, April.
    15. Fabian Gaessler & Stefan Wagner, 2022. "Patents, Data Exclusivity, and the Development of New Drugs," The Review of Economics and Statistics, MIT Press, vol. 104(3), pages 571-586, May.
    16. Adriana Breccia & Hector Salgado-Banda, 2006. "Competing or Colluding in a Stochastic Environment," Computing in Economics and Finance 2006 423, Society for Computational Economics.
    17. Patricia M. Danzon & Eric L. Keuffel, 2014. "Regulation of the Pharmaceutical-Biotechnology Industry," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 407-484, National Bureau of Economic Research, Inc.
    18. Iain M. Cockburn & Jean O. Lanjouw & Mark Schankerman, 2016. "Patents and the Global Diffusion of New Drugs," American Economic Review, American Economic Association, vol. 106(1), pages 136-164, January.
    19. Iizuka, Toshiaki & Uchida, Gyo, 2017. "Promoting innovation in small markets: Evidence from the market for rare and intractable diseases," Journal of Health Economics, Elsevier, vol. 54(C), pages 56-65.
    20. Tulloch, Olivia & Taegtmeyer, Miriam & Ananworanich, Jintanat & Chasombat, Sanchai & Kosalaraksa, Pope & Theobald, Sally, 2015. "What can volunteer co-providers contribute to health systems? The role of people living with HIV in the Thai paediatric HIV programme," Social Science & Medicine, Elsevier, vol. 145(C), pages 184-192.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:glecon:v:12:y:2012:i:4:p:1-19:n:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.