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Licensing life-saving drugs for developing countries: evidence from the medicines patent pool

Author

Listed:
  • Galasso, Alberto
  • Schankerman, Mark

Abstract

We study the effects of the Medicines Patent Pool (MPP)—an institution that pools patents across geographical markets—on the licensing and adoption of life-saving drugs in low- and middle-income countries. We show the presence of an immediate and large increase in licensing when a patent is included in the MPP. We also show evidence that the pool increases actual entry and volume of sales, but these impacts are much smaller than on licensing, which is due to the geographic bundling of licenses. The paper highlights the potential of pools in promoting diffusion of biomedical innovation in developing countries.

Suggested Citation

  • Galasso, Alberto & Schankerman, Mark, 2024. "Licensing life-saving drugs for developing countries: evidence from the medicines patent pool," LSE Research Online Documents on Economics 123932, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123932
    as

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    File URL: http://eprints.lse.ac.uk/123932/
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    References listed on IDEAS

    as
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    3. Andrew Gelman & Guido Imbens, 2019. "Why High-Order Polynomials Should Not Be Used in Regression Discontinuity Designs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(3), pages 447-456, July.
    4. Bolton, Patrick & Farrell, Joseph, 1990. "Decentralization, Duplication, and Delay," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 803-826, August.
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    More about this item

    Keywords

    patents; licensing; patent pool; pharmaceuticals; HIV; public health; developing countries;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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