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Patents and pharmaceutical drugs : understanding the pressures on developing countries

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  • Nogues, Julio

Abstract

This paper offers a discussion to the question of why there are pressures on developing countries for introducing and/or reinforcing patent protection to pharmaceutical drugs. Patent protection is an important component of a complex strategy developed by the research and development intensive pharmaceutical drug companies of industrial countries to meet market competition. For legal and economic reasons, patents are fundamental instruments for allowing the drug-inventing companies to appropriate the returns from their inventions. Patents sustain high prices, which in turn provide rents to undertake further research and development, which in turn allows the invention of new drugs, etc. In recent years, increasing drug regulations have implied that effective patent protection to the research and development intensive pharmaceutical drug companies has eroded. Furthermore, competition from the generic drug companies has increased quite significantly. Restoring patent protection in industrial countries and making developing countries introduce patent protection, has become part of research and development intensive pharmaceutical companies'strategies to regain market share.

Suggested Citation

  • Nogues, Julio, 1990. "Patents and pharmaceutical drugs : understanding the pressures on developing countries," Policy Research Working Paper Series 502, The World Bank.
    • Handle: RePEc:wbk:wbrwps:502
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    References listed on IDEAS

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    Cited by:

    1. Joseph Savirimuthu, 2003. "The Corporate Pharmaceutical Model and the Legacy of Doha: Whither a Global Consensus on Public Health Governance?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 4(1), pages 73-98, March.
    2. Lesser, William H., 1991. "Equitable Patent Legislation for Developing Countries," Staff Papers 121372, Cornell University, Department of Applied Economics and Management.
    3. Lesser, William H., 1995. "Intellectual Property Protection for Indonesia," Staff Papers 121308, Cornell University, Department of Applied Economics and Management.
    4. Samira Guennif, 2007. "Global harmonisation of intellectual property rights and local impact. Patent and access to medicines in developing countries under TRIPS and TRIPS plus provisions [Harmonisation globale des systèm," Post-Print hal-01345869, HAL.
    5. Ming Liu & Sumner la Croix, 2013. "A Cross-Country Index of Intellectual Property Rights in Pharmaceutical Innovations," Working Papers 201313, University of Hawaii at Manoa, Department of Economics.
    6. Liu, Ming & La Croix, Sumner, 2015. "A cross-country index of intellectual property rights in pharmaceutical inventions," Research Policy, Elsevier, vol. 44(1), pages 206-216.

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