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The Market Impacts Of Pharmaceutical Product Patents In Developing Countries: Evidence From India

Author

Listed:
  • Mark Duggan

    (Stanford University)

  • Craig Garthwaite

    (Northwestern University)

  • Aparajita Goyal

    (World Bank)

Abstract

In 2005, as the result of a World Trade Organization mandate, India began to implement product patents for pharmaceuticals that were compliant with the 1995 Trade-Related Aspects of Intellectual Property Rights (TRIPS). We combine pharmaceutical product sales data for India with a newly gathered dataset of molecule-linked patents issued by the Indian patent office. Exploiting variation in the timing of patent decisions, we estimate that a molecule receiving a patent experienced an average price increase of just 3-6 percent with larger increases for more recently developed molecules and for those produced by just one firm when the patent system began. Our results also show little impact on quantities sold or on the number of pharmaceutical firms operating in the market.

Suggested Citation

  • Mark Duggan & Craig Garthwaite & Aparajita Goyal, 2014. "The Market Impacts Of Pharmaceutical Product Patents In Developing Countries: Evidence From India," Discussion Papers 14-005, Stanford Institute for Economic Policy Research.
    • Handle: RePEc:sip:dpaper:14-005
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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