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IP, Rx & FDI. Douglas Lippoldt OECD & GEM-Sciences Po. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. Organisation for Economic Co-operation and Development.
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IP, Rx & FDI Douglas Lippoldt OECD & GEM-Sciences Po The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries.
Organisation for Economic Co-operation and Development • An inter-governmental organisation • A forum for policy development and economic analysis covering all areas of gov’t policy except culture and defence • Promotes policies for growth/employment, economic development, expansion of trade • 30 member countries: in Europe and North America, plus Japan, Korea, Australia, and New Zealand. (expanding) • Industrialised, market-oriented, democracies
Art. 7: “The protection & enforcement of IPRs should contribute to the promotion of technological innovation and to the transfer & dissemination of technology, to the mutual advantage of producers & users of technological knowledge and in a manner conducive to social & economic welfare, and to a balance of rights & obligations.” Art. 66.2: Dev’d countries shall provide incentives promoting tech transfer to LDCs TRIPS (effective 1995)
Index of Patent Rights Based on laws on the Books (0 = weak, 5 = strong) Source: Park and Lippoldt (OECD, 2008)
Rx sector expenditure on R&D, OECD countries Source: OECD Research and Development Expenditure in Industry database.
Source: OECD (2005), Science, Technology and Industry Scoreboard 2005, Paris. Technology intensity of the pharmaceutical sector, selected OECD countries, 1999
Note: EIU - gross inflows 2006: USD 1335 bn Source: World Bank, World Development Indicators, on-line edition. Net inflows of FDI, USD millions
Source: OECD (2006) International Direct Investment Statistics. Direct Investment flows: pharma, medicinal chemical & botanical products (USD, millions)
Regression analysis, controlling for various factors, e.g., other economic influences (level of GDP per capita) & institutions. Estimated relationship of FDI, imports, R&D, non resident patent filings to index of patent protection, 1990–2005
Estimates of the relationship of FDI to strength of patent protection, 1990–2000 Source: Park and Lippoldt (OECD, 2003)
Changing economic environment: globalisation, strengthening of IPRs, etc. IPRs play key role in the ability of the pharma sector to capitalise on their innovation; positive relationship between IPRs and FDI, trade, R&D, patent apps. IPRs: One important factor – among others – influencing trade and investment decisions in the sector (tech transfer) & innovation. Rx locational decisions: global competition Conclusions