TY - JOUR
T1 - The market impacts of pharmaceutical product patents in developing countries
T2 - Evidence from India
AU - Duggan, Mark
AU - Garthwaite, Craig
AU - Goyal, Aparajita
PY - 2016
Y1 - 2016
N2 - In 2005, as the result of a World Trade Organization mandate, India implemented a patent reform for pharmaceuticals that was intended to comply with the 1995 Trade-Related Aspects of Intellectual Property Rights (TRIPS). 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.
AB - In 2005, as the result of a World Trade Organization mandate, India implemented a patent reform for pharmaceuticals that was intended to comply with the 1995 Trade-Related Aspects of Intellectual Property Rights (TRIPS). 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.
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U2 - 10.1257/aer.20141301
DO - 10.1257/aer.20141301
M3 - Article
AN - SCOPUS:84979239897
SN - 0002-8282
VL - 106
SP - 99
EP - 135
JO - American Economic Review
JF - American Economic Review
IS - 1
ER -