Indian Pharma Within Global Reach?

The Indian pharmaceutical industry is presently going through a phase of transition and potential consolidation, owing to India's new TRIPS-compliant intellectual property regime and other rules aimed at enhancing the industry's credibility nationally and internationally. Appropriate policy interventions can play a large role in cushioning the transition (and gradual consolidation) of the industry post-2005. Using firm level data collected in 2004-2005, this paper seeks to make two major contributions in this regard. The research findings show that the Indian pharmaceutical sector is a heterogeneous mix of firms with vast differences in innovative capabilities. Based on these differences, the groups can be categorized into specific "innovation modes" (the innovator, the niche operator and the manufacturer), each mode being a step closer towards the innovative pharmaceutical firm. Second, the paper highlights how the emerging strategies of firms in all three groups, although different, underpin the importance of systemic coordination in the pharmaceutical sector. The analysis links both these findings to policies pursued in the pharmaceutical sector over the past four decades and highlights the role of differential innovation policy in ensuring optimal sectoral performance.Pharmaceutical industry, Innovation policy, TRIPS, Intellectual Propery, IPR, Property rights, India

Networks, Standards and Intellectual Property Rights

This paper reviews issues that lie at the intersection between intellectual property rights (IPR) and network effects, especially in the context of the global economy. Some of the relevant questions are: (1) How do IPR influence the provision of goods exhibiting network effects? (2) How do network effects in turn influence the creation of intellectual property? And (3) how do aspects of the global economy interact with both IPR and network effects? We synthesize what is known from the existing literature to answer these questions.Intellectual Property Rights, Network Effects, Globalization, Standards, Social Networks, Software Piracy

Asia-Pacific Trade and Investment Review

The chapter discusses, from a developing country's perspective, the impact and implications of the Agreement on Trade-Related Intellectual Property Rights of the World Trade Organization (WTO). It does so by putting them into the context of relevant trends of globalization and assessing the political and institutional setting within the WTO framework. The paper thereby provides comprehensive background information on trade-related aspects of intellectual property rights (TRIPs) and the resulting international intellectual property regime, including its characteristics, preconditions, the actors and interests involved, and it provides an institutional analysis.Trade-Related Intellectual Property Rights, TRIPs, WTO, developing countries

Innovation in India and China : Challenges and Prospects in Pharmaceuticals and Biotechnology

India and China are important players in an evolving process of globalization of research and development (R&D). Focusing on pharmaceuticals and biotechnology industries, this paper analyses the challenges and prospects facing the two countries in global innovation. Large supplies of highly skilled professionals and well-established science and technology infrastructures are important assets for India and China in the era of globalization of R&D. At the same time, however, there is a concern that as globalization of R&D gathers steam, the poor in India, China and other developing countries are likely to be left out of the new innovations. A good example is the case of Indias pharmaceuticals industry. The leading Indian pharmaceutical firms have responded well to the challenge of a strict intellectual property rights (IPR) regime by increasing their R&D spending and, simultaneously, targeting their sales to the generic drugs markets in North America and Europe. But even as Indias top drug firms have been growing in technological capabilities and taking part in the globalization of pharmaceuticals R&D, they have also been shifting their focus away from the market for medicines for poor patients.India, China, innovation, pharmaceuticals, biotechnology

Intellectual Property and Innovation: Changing Perspectives in the Indian IT Industry

Indian government has undertaken significant modifications in the IP regime of the country. This will lead to a realignment of business strategies by firms in several sectors. Similarly, with liberalization and globalization, new opportunities for IP creation may emerge for Indian firms. In this context, the paper attempts to document the emerging perspectives vis-�-vis IPRs in the Indian IT industry and explore factors that are driving the change in perspectives. Large IT firms and firms in high-end niche areas are proactively seeking IP based growth strategies. While they typically seek IP protection in Western nations and not so much in India, this has led them to perceive restrictive IP regimes more positively. IP regimes in the West are more relevant for IP creating Indian IT firms today but this may change in the near future as Indian market expands. Significant IP creation by MNC subsidiaries in India is also contributing to this change in perception. Survey data show that an average IT firm in India also perceives IP protection as an important appropriability mechanism, but access to markets and relevant complementary assets continue to be more important for appropriating profits from their economic activity. A positive view of the restrictive IP regimes also gets reflected in the demands of Indian industry associations for changes in the Indian law. Broadly, these changes in perceptions seem to be linked to the evolving global production networks, changing activity profile of Indian IT firms, emerging business opportunities and changes in the competitive scenario. The understanding of Indian IT firms of the complexities of IP regimes remains rudimentary and they will need significant preparation to deal with these IP related challenges.

Asia-Pacific Trade and Investment Review

This book reviews latest trends in trade and investment policy issues facing Asia-Pacific region.Trade, Foreign Direct Investment, Financial Crisis, Environment, Agricultural Trade Liberalization, WTO

Global Innovation Policy Index

Ranks fifty-five nations' strategies to boost innovation capacity: policies on trade, scientific research, information and communications technologies, tax, intellectual property, domestic competition, government procurement, and high-skill immigration

Do Property Rights matter for China's Private Sector? A Panel Data Analysis, 1997-2007

This paper examines the ambiguous property rights in China and if they affect the private sector development. The indicators for property rights include both broader property rights and intellectual property rights. The property rights theory offers a perspective as a fundamental component of a market economy to enable a growth of private enterprises. The incentives and constraints offered by the property rights regime is determining the outcome of how enterprises are performing and operating. Yet in China there has been a rapid development of the private sector, while the property rights stay inadequate. The private sector which is the dependent variable is measured by employment of private enterprises. The sample consists of 275 observations and is conducted cross-provincial with 25 Chinese provinces to examine the various contents of property rights regime and the private sector development. The data is collected from several Provincial Statistical Yearbooks, available at Chinese Statistical Database. A fixed effect model is performed, covering 10 years from 1997 to 2007. The main finding is that the four municipalities are at forefront driving the effect of intellectual property rights on size of the private sector while broader property rights does not have an effect. This implies that private firms find intellectual property rights protection essential when production is high-tech and innovative activities are prioritised. Other private firms find informal substitutions for weaker property rights

Property rights in the knowledge economy: an explanation of the crisis

Some of the roots underlying the recent crisis may be found in the global convergence towards a model characterized by strong property rights and an extremely limited role attributed to "open science". The modern economy has increasingly moved from an open science - open markets model toward a closed science - closed markets model. Paradoxically, while a non-rival resource like knowledge becomes the most relevant input, small firms and new entrants find it increasingly difficult to be competitive with large and well established organizations. Such a model is progressively increasing the costs of investment in new knowledge, with important negative consequences in terms of overall performance of the economy. We argue that in the knowledge economy, overcoming inequality and the economic crisis can be part of a single coherent policy. If some essential knowledge is moved from the private to the public sphere, this is has not only desirable inequality-decreasing consequences but can also contribute to re-launching the economy, creating the conditions for a sustained development. In a knowledge economy, a super-multiplier could couple the traditional effects of Keynesian spending in time of crisis with the multiplying virtues human knowledge, moved from the private to the public sphere.