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Global drug diffusion and innovation with the medicines patent pool

Author

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  • Wang, Lucy Xiaolu
Abstract
This paper studies the impact of the first joint licensing platform for patented drugs, the Medicines Patent Pool, on global drug diffusion and innovation. The pool allows generic firms worldwide to license drug bundles cheaply and conveniently for sales in a set of developing countries. I construct a novel dataset from licensing contracts, public procurement, clinical trials, and drug approvals. Using difference-in-differences methods, I find that the pool leads to substantial increases in the generic supply of drugs purchased, particularly in countries with stronger patent protection. In addition, there are some positive increases in clinical trials and drug product approvals after a compound enters the pool, mostly by firms outside the pool.

Suggested Citation

  • Wang, Lucy Xiaolu, 2022. "Global drug diffusion and innovation with the medicines patent pool," Journal of Health Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:jhecon:v:85:y:2022:i:c:s0167629622000868
    DOI: 10.1016/j.jhealeco.2022.102671
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    References listed on IDEAS

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    More about this item

    Keywords

    Drug cocktails; Innovation and diffusion; Patent pool; Developing countries;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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