Patenting and the dynamics of innovation: the role of appropriability regime in pharmaceutical R&D

Bhawani Bhatnagar, Viktor Dörfler, Jillian MacBryde

Research output: Contribution to conferencePaper

Abstract

The appropriability regime in India changed with the implementation of Trade Related Intellectual Property Rights agreement and the ensuing Patent Amendments Act 2005, leading to product patent regime. When faced with a change from process patent regime to product patent regime in 2005, local firms could either continue with the generics business for patenting expired drugs or engage in research and development of incremental product innovations of existing drugs or new drug research. We analyze patent data and information from published sources for cases of five established and four startup Indian pharmaceutical firms to understand the influence of the change in the appropriability regime on the research and innovative activities of the firms. Our results show that firms have shown technological progression during both appropriability regimes and there is stepwise increment in nature of innovation. Furthermore, in the new appropriability regime, firms tend to file international applications for their high value inventions with greater commercial or out-licensing potential. We conclude that new appropriability regime offers distinct commercial opportunities and influences the research and development activities and propensity of firm to innovate.
Original languageEnglish
Pages1-40
Number of pages40
Publication statusPublished - 9 Aug 2016
Event76th Annual Meeting of the Academy of Management - Anaheim, Los Angeles, United States
Duration: 5 Aug 20169 Aug 2016
http://aom.org/AnnualMeetingLanding.aspx?id=1912

Conference

Conference76th Annual Meeting of the Academy of Management
Abbreviated titleAoM 2016
CountryUnited States
CityLos Angeles
Period5/08/169/08/16
Internet address

Keywords

  • Indian pharmaceutical sector
  • open innovation
  • pharmaceutical industry
  • patenting
  • appropriability regime

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    Bhatnagar, B., Dörfler, V., & MacBryde, J. (2016). Patenting and the dynamics of innovation: the role of appropriability regime in pharmaceutical R&D. 1-40. Paper presented at 76th Annual Meeting of the Academy of Management, Los Angeles, United States.