nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒03‒05
six papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. An Empirical Analysis of Primary and Secondary Pharmaceutical Patents in Chile By María José Abud Sittler; Bronwyn Hall; Christian Helmers
  2. International Specialization in Research & Development By Evrin, Alperen
  3. Intellectual Property in Plant Breeding: Comparing Different Levels and Forms of Protection By Lence, Sergio H.; Hayes, Dermot J.; Alston, Julian; Smith, J. Stephen C.
  4. Venture Capital and Knowledge Transfer By Dessi, Roberta; Yin, Nina
  5. The Cleansing Effect of R&D Subsidies By Tetsugen Haruyama
  6. Private Label Brands: Benefits and Challenges Pingo Doce Case Study By José Cevada; Joana César Machado

  1. By: María José Abud Sittler; Bronwyn Hall; Christian Helmers
    Abstract: We analyze the patent filing strategies of foreign pharmaceutical companies in Chile distinguishing between “primary” (active ingredient) and “secondary” patents (patents on modified compounds, formulations, dosages, particular medical uses etc.). There is prior evidence that secondary patents are used by pharmaceutical originator companies in the U.S. and Europe to extend patent protection on drugs in length and breadth. Using a novel dataset that comprises all drugs registered in Chile between 1991 and 2010 as well as the corresponding patents and trademarks, we find evidence that foreign originator companies pursue similar strategies in Chile. We find a primary to secondary patents ratio of 1:4 at the drug-level which is comparable to the available evidence for Europe; most secondary patents are filed over several years following the original primary patent and after the protected active ingredient has obtained market approval in Chile. This points toward effective patent term extensions through secondary patents. Secondary patents dominate “older” therapeutic classes like anti-ulcer and anti-depressants. In contrast, newer areas like anti-virals and anti-neoplastics (anti-cancer) have a much larger share of primary patents.
    JEL: K12 L5 L65 O34
    Date: 2015–02
  2. By: Evrin, Alperen
    Abstract: In this paper, I examine the effects of implementing tighter Intellectual Property Rights in a model of International Trade. In my model, firms in different countries have the choice of committing their resources to introducing new products (product innovation) or to imitating and improving upon current products (process innovation). I analyze the impact of stronger patents on innovation decisions, overall welfare and the distribution of welfare among countries. I show that, depending on parameter values, firms in developed countries (North) may altogether specialize in product innovation or may attain incomplete specialization in the sense that some innovate and some imitate. Welfare analysis will depend on the degree of specialization. In the case of incomplete specialization, tighter IPRs increase the incentives for product innovation in the North but, at the same time, increase the imitation done in the South. This finding is contrary to the conventional argument that states the reverse for imitation rates. In the case of complete specialization, stronger patents do not affect the rate of product innovation but reduce the rate of imitation, and welfare is nonmonotonic in IPRs. Finally, I examine the case of Foreign Direct Investment (FDI) and predict that stronger patents will increase the FDI while lowering the wages worldwide.
    Keywords: Patent Policies, Foreign Direct Investment
    JEL: F43 O31 O34 O38
    Date: 2013–12–12
  3. By: Lence, Sergio H.; Hayes, Dermot J.; Alston, Julian; Smith, J. Stephen C.
    JEL: O31 O34 Q16
    Date: 2015–03–02
  4. By: Dessi, Roberta; Yin, Nina
    Abstract: This paper explores a new role for venture capitalists, as knowledge intermediaries. A venture capital investor can communicate valuable knowledge to an entrepreneur, facilitating innovation. The venture capitalist can also communicate the entrepreneur's innovative knowledge to other portfolio companies. We study the costs and benefits of these two forms of knowledge transfer, and their implications for investment, innovation, and product market competition. The model also sheds light on the choice between venture capital and other forms of finance, and the determinants of the decision to seek patent protection for innovations. Our analysis provides a rationale for the use of contingencies (specifically, patent approval) in VC contracts documented by Kaplan and Stromberg (2003), and for recent evidence on patterns of syndication among venture capitalists.
    Keywords: venture capital, knowledge intermediaries, contracts, innovation, competition, patents.
    JEL: D82 D86 G24 L22
    Date: 2015–02
  5. By: Tetsugen Haruyama (Graduate School of Economics, Kobe University)
    Abstract: The paper develops a patent race model of firms which differ in R&D productivity. It is demon-strated that R&D subsidies generate the cleansing effect where relatively lower productivity firms drop out of the race and innovation accelerates due to expanded R&D investment by the remaining firms and new entrants with higher productivity than those that exit.
    Keywords: Patent race, R&D, industrial policy, cleansing effect
    JEL: L10 L20 L52 O32
    Date: 2014–10
  6. By: José Cevada (Faculdade de Economia e Gestão, Universidade Católica Portuguesa - Porto); Joana César Machado (Faculdade de Economia e Gestão and CEGE, Universidade Católica Portuguesa - Porto)
    Abstract: This working paper analyzes the growing importance of private labels in today’s modern distribution, and the main opportunities and threats they raise for retailers and national brands. Our main purpose was to: (1) analyze consumer´s perceptions of private label brands, (2) identify their critical relevance for retailers; (3) understand how national brands can benefit from private labels’ sustainable growth and (4) identify the major challenges they bring for different types of national brands (namely, A Brands and B Brands). We used a case study approach and analyzed the strategy of Pingo Doce brand, a private label that belongs to Jerónimo Martins group. Among other relevant findings, we found evidence that the drop in Pingo Doce’s market share, in 2013, was the result of a strategic move to significantly improve consumers’ quality perceptions, and, simultaneously, keep a profitable balance between the private label and national brands.
    Keywords: Corporate brand; private label brands; retailers; national brands; benefits of private label brands
    Date: 2015–01

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