Pharmaceuticals and herbal medicine in the Asia Pacific amidst TRIPS and the TPP

The author assesses the TPP’s impact on the pharmaceutical industry’s ability to achieve learning, a catch-up platform, and innovation of industrial cooperation between import and export countries, and job creation opportunities. Their literature review provides theoretical and empirical evidence on pharmaceutical pricing, patent protection, trade-induced foreign direct investment, and profit earnings between pharmaceutical export and import countries. The rising attention to the cost containment and strategic planning for medical devices innovation are also addressed, as well as innovative business medical insurance reimbursement for expanding the over-the-counter (OTC) pharmaceutical market. The chapter presents a statistical comparison of medical and pharmaceutical performance in Taiwan, which is one of the first countries in the world with a mandated National Health Insurance regime and single insurer (put in place in 1995). The market penetration of new drugs through institutional design can contribute to pharmaceutical innovation, which can lead to future international collaborations on compound formulas for herbal medicines, creating new market mechanism in the region.