Working Paper: CEPR ID: DP15544
Authors: Alberto Galasso; Mark Schankerman
Abstract: We study the effects of a patent pool on the licensing and adoption of life-saving drugs in low- and middle-income countries. Using data on licensing and sales for HIV, hepatitis C and tuberculosis drugs, we show that there is an immediate and large increase in licensing by generic firms when a patent is included in the Medicines Patent Pool (MPP). This finding is robust to identification strategies to deal with endogeneity of MPP patents and countries. The impact of the MPP is especially large for small, non-Sub-Saharan countries. The impact on actual entryand sales, however, is much smaller than on licensing, which is due to geographic bundling of licenses by the MPP. More broadly, the paper highlights the potential of pools in promoting technology diffusion of biomedical innovation.
Keywords: patents; licensing; patent pool; pharmaceuticals; HIV; public health; developing countries
JEL Codes: I18; O31; O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Geographic bundling of licenses (D45) | Limit on market entry and sales by generic firms (L13) |
| Inclusion in the MPP (D70) | Increase in the probability of licensing (D45) |
| Inclusion in the MPP (D70) | Increase in licensing activity (D45) |
| Increase in licensing activity (D45) | Market entry and sales by generic firms (L19) |