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

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.

Conference

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

Fingerprint

pharmaceutical
Drug products
Innovation
regime
innovation
patent
firm
Research
Pharmaceutical Preparations
Intellectual property
Intellectual Property
Patents and inventions
drug
research and development
Ownership
Licensure
India
Appropriability regime
Pharmaceuticals
Patenting

Keywords

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

Cite this

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, Anaheim, United States.
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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.",
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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' Paper presented at 76th Annual Meeting of the Academy of Management, Anaheim, United States, 5/08/16 - 9/08/16, pp. 1-40.

Patenting and the dynamics of innovation : the role of appropriability regime in pharmaceutical R&D. / Bhatnagar, Bhawani; Dörfler, Viktor; MacBryde, Jillian.

2016. 1-40 Paper presented at 76th Annual Meeting of the Academy of Management, Anaheim, United States.

Research output: Contribution to conferencePaper

TY - CONF

T1 - Patenting and the dynamics of innovation

T2 - the role of appropriability regime in pharmaceutical R&D

AU - Bhatnagar, Bhawani

AU - Dörfler, Viktor

AU - MacBryde, Jillian

PY - 2016/8/9

Y1 - 2016/8/9

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AB - 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.

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KW - open innovation

KW - pharmaceutical industry

KW - patenting

KW - appropriability regime

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