Supply chain risk management – II: A review of operational, financial and integrated approaches

This article is a sequel to Bandaly et al. (2011). Structured around the supply chain risk management (SCRM) typology and framework presented in the aforementioned article, this article provides a review on individual operational and financial risk management approaches reported in the literature. Avoidance, prevention and mitigation approaches reported are also summarized in tabular format for the four risk domains covered (internal operations, external stakeholders, marketplace and environment). Distinctions between operational and financial approaches are highlighted. A review of studies integrating both approaches is then presented. Areas for future research in SCRM are argued

Cadre de planification intégrée de la chaîne logistique pour la gestion et l'évaluation de stratégies de bioraffinage forestier

Le bioraffinage est maintenant reconnu comme une solution prometteuse pour la transformation de l’industrie forestière. Ce concept offre l’opportunité aux entreprises forestières de diversifier leurs revenus par la production de nouveaux bioproduits à valeur ajoutée. La transition vers le bioraffinage implique toutefois plusieurs changements stratégiques importants, notamment dans le modèle d’affaires des entreprises. En effet, celles-ci devront à la fois se questionner sur la pertinence de rester ou non dans le domaine plus traditionnel des pâtes et papiers, faire la sélection d’un portefeuille de procédés et produits de bioraffinage, pénétrer de nouveaux marchés, et effectuer une gestion de la production permettant de minimiser le risque de volatilité du marché. Au cours des dernières années, les principes de gestion de la chaîne logistique ont été au cœur des recherches du milieu universitaire et de l’industrie afin d’accroître la rentabilité de l’ensemble des opérations. L’application des concepts de gestion de la chaîne logistique pourrait donc grandement aider les entreprises forestières à être plus compétitives globalement. Dans cette optique, l’objectif principal de cette thèse était de concevoir une approche systématique pour la gestion et l’évaluation de stratégies de bioraffinage intégrées à une usine forestière. À cet effet, une approche de gestion de la chaîne logistique dite axée sur les marges de profit a été développée. Celle-ci intègre des concepts inspirés de la gestion des recettes, de la flexibilité manufacturière et de la comptabilité par activité. Les concepts sont incorporés dans un modèle de planification tactique dont l’objectif est de maximiser la rentabilité de l’entreprise. La structure du modèle mathématique et du modèle de coût associé permettent de représenter le plus fidèlement possible les activités de l’entreprise, de l’approvisionnement, jusqu’aux ventes. Il est ainsi possible de modéliser les différentes configurations de procédés présentes dans une usine et menant à la flexibilité manufacturière. Le modèle peut alors être utilisé comme plateforme pour évaluer différentes stratégies d’opération de l’entreprise, aux niveaux de la production et de la chaîne logistique. L’approche axée sur les marges de profit a été illustrée par l’étude du cas d’une usine de production de papier journal envisageant l’implantation d’un procédé de fractionnement de la biomasse pour fabriquer différents bioproduits. Diverses analyses tactiques et stratégiques ont été effectuées pour montrer la pertinence de l’approche comme outil d’aide à la prise de décision pour des problèmes de gestion propres au bioraffinage forestier. Le modèle a été utilisé pour évaluer la rentabilité d’une entreprise lors de sa transformation vers le bioraffinage, en considérant simultanément l’investissement dans de nouveaux procédés de bioraffinage et la fermeture d’actifs papetiers. En offrant une meilleure visualisation et une meilleure compréhension de la dynamique des coûts et de la chaîne logistique sous divers scénarios, l’outil permet d’éclairer le processus de prise de décision. Couplé à une analyse de scénarios, il offre aussi la possibilité de développer une stratégie d’implantation par phase qui stabiliserait les revenus lors de la transformation vers le bioraffinage. L’outil de planification a aussi été employé pour étudier la gestion de la production du portefeuille de produits permettant d’atténuer les risques causés par la volatilité du marché. Une des analyses reliées à la gestion du portefeuille porte sur l’exploitation de la flexibilité au niveau de la production de pâtes thermomécanique et désencrée afin de minimiser le coût d’approvisionnement en matières premières selon les conditions du marché. Une autre analyse étudie l’impact de la flexibilité de l’approvisionnement et de la production d’un procédé de fractionnement de la biomasse sur les ventes et la rentabilité. Les résultats de l’étude montrent que les processus d’approvisionnement et de production doivent être considérablement modifiés selon les conditions de marché pour produire un portefeuille de produits avec des marges optimales. La dynamique des coûts de production et le nombre d’interrelations présentes dans une bioraffinerie forestière complexifient l’identification des meilleures conditions d’opération. Ils corroborent ainsi la pertinence d’utiliser un tel modèle de planification pour identifier les meilleures opportunités. De plus, les résultats montrent que, dans un contexte où les ventes peuvent être variées jusqu’à un certain niveau, il peut être souhaitable de payer davantage pour certains types de biomasse si ces derniers offrent un portefeuille de produits avec de meilleurs revenus. ---------- Biorefining is now recognized as a promising solution to transform the struggling forestry industry and to generate value-added pathways. The implementation of new products and processes will help companies to diversify revenues, but implies several strategic changes in the business model. Companies will face the dilemma of exiting or not traditional pulp and paper operations, while selecting their biorefinery product and process portfolio. As well, they will have to enter new markets and manage production to minimize the risk of market volatility. Over the past decades, both industry and academia paid a lot of attention to supply-chain management in order to increase the cost effectiveness of overall operations. The application of supply-chain management concepts could therefore greatly help the transforming North American forestry industry to compete globally. The objective of this Ph.D. project was to propose and illustrate an integrated supply-chain planning framework for the management and the evaluation of forest biorefinery strategies. This framework, named margins-based, integrates principles from revenue management, activity-based cost accounting, and manufacturing flexibility in a tactical planning model that maximizes profit of a company. The structure of the mathematical model and its associated cost model aims to represent as closely as possible the activities of a company, from procurement to sales. It enables the modeling of different process configurations leading to manufacturing flexibility. The model can thus be used as a platform for evaluating various operating strategies of a company, at both production and supply-chain levels. A case study of a newsprint mill implementing a parallel biomass fractionation line producing several bioproducts was used to illustrate this margins-based approach. Various strategic and tactical analyses were conducted to show the relevance of the approach as a decision-making tool for management problems related to the forest biorefinery. The model was used to evaluate the profitability of a company during its transformation to the biorefinery, by considering the gradual divestment in pulp and paper activities, while implementing a new biorefinery process. Results show that the tool can enhance decision-making activities by providing a better visualization and better comprehension of supply-chain and cost- related dynamics under different scenarios. Coupled with a scenario analysis, it offers the opportunity to develop a phased implementation strategy that would stabilize profitability during the transformation to the biorefinery. The planning tool was also used to study the management of a product portfolio to mitigate the risk of market volatility. One analysis focused on the exploitation of thermomechanical and deinked pulping flexibility in order to minimize the cost of raw material procurement in different to market conditions. Another analysis examined the impact of feedstock and production flexibility of a fractionation process on sales and profitability. Results show that the procurement and production needed to manufacture the product mix that provides the optimum margins vary significantly. Biorefinery processes can have complex interrelations that make dynamics and trade-offs between manufacturing options not easy to identify and understand. Results thus highlight the relevance of using such planning tools to identify the best opportunities. In a context where sales can be varied to a certain level, results also show that it may be beneficial to pay more for certain types of biomass if they offer a product portfolio mix with higher revenues

Design for Flexibility in the Forest Biorefinery Supply Chain

Le climat d’affaires de industrie papetière nord américaine et européenne change présentement. La baisse de la demande, la volatilité des prix, l’augmentation de la compétition pour l’accès aux matières premières et le contrôle du marché, ainsi que des couts énergétiques passablement élevés poussent les entreprises forestières à rechercher de nouveaux modèles d’affaires afin d’être plus compétitives sur le long terme. Une des alternatives pour ces entreprises est de se tourner vers le secteur émergent de la bioéconomie et du bioraffinage. Possédant déjà un système d’utilité, un réseau d’approvisionnement de matières premières, un réseau de distribution de produits ainsi qu’un savoir-faire technique ouvrant la porte à de nombreuses possibilités d’intégration massique et énergétique, l’industrie forestière possède plusieurs avantages compétitifs pouvant améliorer la performance économique de l’implantation du bioraffinage. Plusieurs stratégies différentes peuvent être adoptées pour implanter des activités de bioraffinage au sein d’une entreprise. Par contre, en raison des risques technologiques et des risques de marché associés aux nouveaux procédés et produits, et le manque en capital des entreprises forestières, l’implantation du bioraffinage devrait être effectuée par phase. Des outils d’analyse appropriés sont toutefois requis afin d’identifier les stratégies possibles et les phases d’implantation. Puisque la chaine logistique (SC) d’une entreprise est critique pour la compétitivité à long terme des bioraffineries, un outil d’analyse de la SC peut donc jouer un rôle clé pour une transformation d’entreprise réussie. Une analyse de la SC calcule le bénéfice pour l’ensemble de la chaine logistique et prend en compte les différents contributeurs de couts qui sont typiquement ignorés dans les analyses économiques, tel que les couts d’inventaire, de transition, etc. Elle peut aussi être utilisée pour prendre en considération la volatilité du marché, et détermine comment la flexibilité inhérente d’un système de production peut être exploitée pour atténuer les risques et maximiser le profit. À cet effet, une analyse de la SC peut aussi être utilisée pour cibler le niveau de flexibilité souhaité d’un système afin d’atténuer les risques de volatilité du marché. De plus, cette analyse offre une meilleure compréhension des couts et de la rentabilité d’une stratégie d’implantation donnée. Ainsi, une analyse de la SC peut être utilisée à deux fins différentes : v • Pour la prise de décision au niveau de conception, et plus précisément, pour cibler le niveau de flexibilité d’un procédé de fabrication, • Pour comparer différentes stratégies pouvant être poursuivies par une entreprise, en évaluant leur performance selon différentes conditions de marché. L’objectif de cette recherche est d’illustrer une telle méthodologie de conception, soit une méthodologie qui cible un niveau de flexibilité manufacturière préférable à avoir, qui aide à concevoir le réseau de la SC, et qui permet d’évaluer différentes stratégies de bioraffinage pour transformer une entreprise forestière. Cette méthodologie est démontrée en utilisant une étude de cas qui inclut deux options de produits/procédé, dont des procédés thermochimiques et biochimiques, et plusieurs stratégies d’implantation à implanter au fil du temps. Le point d’ancrage de cette méthodologie est basé sur les principes de gestion de la chaine logistique centrée sur les marges. Plutôt que d’appliquer une approche traditionnelle centrée sur la production, où la gestion de la capacité des équipements et la minimisation des couts de production prime, une approche centrée sur les marges vise plutôt à maximiser le profit. Pour ce faire, tous les couts encourus au long de la SC doivent être considérés de façon intégrée. De même, le potentiel de flexibilité au sein de la SC, particulièrement au niveau de la production, doit être exploité pour maximiser le profit. Une formulation mathématique d’optimisation est développée pour représenter une telle mentalité. Selon cette dernière, une méthodologie de conception est proposée afin d’aider le processus de prise de décision stratégique reliée au design de la chaine logistique du bioraffinage. Cette méthodologie est alimentée par d’autres méthodologies qui identifient un ensemble d’options de procédés/produits prometteurs. Elle comprend quatre étapes principales : 1. La définition des alternatives de procédés représentant différents potentiels de flexibilité, 2. La définition d’options de réseau de SC, en tenant compte des caractéristiques des alternatives de procédés, de même que les politiques, les forces et les faiblesses de l’entreprise étudiant ces alternatives procédés/produits, 3. Le ciblage d’un degré de flexibilité manufacturière et d’un réseau de SC associé, 4. L’analyse de stratégies d’implantation des alternatives procédés/produits retenues vi Un ensemble d’indicateurs de performance représentant la rentabilité de la SC, la robustesse et la flexibilité des différentes options de bioraffinage est utilisé pour évaluer la performance de stratégies de bioraffinage selon différents scénarios de marchés. Les résultats montrent que lorsque la flexibilité d’un système est améliorée, le profit augmente. Cependant, cela ne mène pas nécessairement à une amélioration de la rentabilité. Pour que la rentabilité d’un système flexible augmente, les investissements supplémentaires déboursés pour augmenter le degré de flexibilité doivent être compensés par une amélioration au niveau des profits. Ainsi, pour certains cas, la rentabilité augmente avec la flexibilité du procédé, et dans certains cas non. De plus, la robustesse d’une option est directement liée à sa flexibilité. Plus le degré de flexibilité augmente, plus le système devient robuste envers la volatilité du marché. De même, les résultats montrent l’importance de l’analyse de la SC lors de la prise de décision reliée à la conception. Ils illustrent le fait qu’un changement dans le degré de flexibilité manufacturière d’un procédé affecte directement les opportunités de l’entreprise. Ainsi, des stratégies de marché et des degrés de flexibilité différents impliquent une configuration de réseau de SC et une stratégie de gestion spécifiques. Il devrait donc y avoir une intégration entre la conception de procédés et la conception du réseau de la SC. Il est aussi montré que les produits chimiques à valeur ajoutée sont prometteurs pour le succès futur du bioraffinage. Les options de procédés fabriquant ces derniers obtiennent une rentabilité en termes de taux de retour interne considérablement plus élevée que les options fabriquant des produits de commodités.---------- The pulp and paper industry business environment in North-America and Europe is changing. Declining and volatile product price and demand, increased competition for feedstock and market share, growing competition from global low-cost producers and considerably high energy cost are driving companies to seek alternative business models to be competitive over the longer term. One alternative is to enter the bio-energy and biorefinery sectors that have been emerging in recent years. Having the required utility systems in place and the engineering know-how, existing feedstock supply chain networks and product delivery systems as well as the potential for mass and/or energy integration between existing processes and new processes imply competitive advantages for the forestry companies to improve their economic performance via implementing biorefinery. Many different strategies can be pursued for implementing the biorefinery. Due to a lack of capital for implementing such strategies, technological risks and product market immaturities, the implementation should be executed in a phase-wise manner. Proper analysis tools are required to identify feasible strategies and their implementation phases. The design and management of supply chain (SC) is critical for the long-term competitive advantage of companies who would like to implement the biorefinery. In this regard, SC analysis can be used to evaluate the potential SC performance of different biorefinery strategies. It calculates the profit across the entire SC and accounts for cost contributors that are typically ignored in economic analyses, e.g. inventory cost, changeover cost, etc. It can also be used to take into consideration market volatility, and determine how the flexibility of the manufacturing system can be exploited to mitigate market risks in order to maximize profit. In this way, SC analysis can be used to target the desired level of flexibility of a manufacturing system needed to mitigate the impact of market price volatility. Moreover, these capabilities provide better insight into the costs and profit incurred by an implemented strategy. Thus, an SC analysis can be used for two different purposes: • For making design decisions, and more specifically, for targeting the level of flexibility of a system and designing the SC network configuration • For comparing several strategies by evaluating their performance for different market conditions viii The objective of this thesis is to develop a design methodology for targeting the required level of flexibility, designing the SC network configuration, and evaluating different FBR strategies for transforming a forest company. The methodology is demonstrated using a case study that involves two product/process options, including thermochemical and biochemical processes, with several implementation strategies, implemented over the years. The pivot of this methodology is the margins-based thinking used as an operating policy. It is discussed that, instead of applying the traditional manufacturing-centric approach in production which focuses on capacity management and tries to minimize the costs, the margins-based policy must be implemented, which has the following specifications: • It maximizes the profit instead of minimizing costs • It considers all costs incurred by SC activities in an integrated manner and doesn’t only focus on production cost • It exploits the potential for flexibility in the SC, especially in production, to maximize profit A SC optimization formulation is developed to represent such thinking. Using this formulation, a design methodology is proposed for making strategic decisions related to biorefinery SC design. This methodology is fed by separate methodologies which identify the most promising set of product to produce and technologies to employ. Given that, the methodology involves four major steps: • Defining process alternatives representing different potentials for flexibility • Defining SC network alternatives based on the defined process alternatives as well as the policies, advantages and restrictions of the company • Targeting the level of flexibility of processes and determining its associated SC network • Analyzing different implementation strategies for the proposed product/processes with their targeted level of flexibility and defined SC network A set of performance metrics that represents SC profitability, robustness and flexibility is used to evaluate the performance of biorefinery strategies for several market scenarios. The results show that when the flexibility of a system is enhanced, its profit increases. But this does not necessarily end in profitability improvement. For the profitability of a flexible system to ix improve, the extra capital cost paid for increasing the level of flexibility must be compensated by the profit improvement. Thus, for some cases profitability increases with flexibility and for some cases it does not. Moreover, robustness has a direct relationship with flexibility. As flexibility increases, the system becomes more robust against market volatility. The results reveal the importance of SC analysis in making design decisions. They illustrate that changes in the level of flexibility will directly affect the company’s opportunities and strategies in the market, and thus, each level of flexibility implies a specific SC network configuration and management strategy. Therefore, there must be integration between process design and SC network design. It is also shown that added-value chemicals are promising for the long-term success of biorefineries. Their profitability, in terms of internal rate of return (IRR), is considerably higher than that of commodities

Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis

The purpose of this study is twofold: first, to establish the current themes on the topic of manufacturing and supply chain flexibility (MSCF), assess their level of maturity in relation to each other, identify the emerging ones and reflect on how they can inform each other, and second, to develop a conceptual model of MSCF that links different themes connect and highlight future research opportunities. The study builds on a sample of 222 articles published from 1996 to 2018 in international, peer-reviewed journals. The analysis of the sample involves two complementary approaches: the co-word technique to identify the thematic clusters as well as their relative standing and a critical reflection on the papers to explain the intellectual content of these thematic clusters. The results of the co-word analysis show that MSCF is a dynamic topic with a rich and complex structure that comprises five thematic clusters. The value chain, capability and volatility clusters showed research topics that were taking a central role in the discussion on MSCF but were not mature yet. The SC purchasing practices and SC planning clusters involved work that was more focused and could be considered more mature. These clusters were then integrated in a framework that built on the competence–capability perspective and identified the major structural and infrastructural elements of MSCF as well as its antecedents and consequences. This paper proposes an integrative framework helping managers keep track the various decisions they need to make to increase flexibility from the viewpoint of the entire value chain

SUPPLY CHAIN RISK MANAGEMENT IN AUTOMOTIVE INDUSTRY

The automotive industry is one of the world\u27s most important economic sectors in terms of revenue and employment. The automotive supply chain is complex owing to the large number of parts in an automobile, the multiple layers of suppliers to supply those parts, and the coordination of materials, information, and financial flows across the supply chain. Many uncertainties and different natural and man-made disasters have repeatedly stricken and disrupted automotive manufacturers and their supply chains. Managing supply chain risk in a complex environment is always a challenge for the automotive industry. This research first provides a comprehensive literature review of the existing research work on the supply chain risk identification and management, considering, but not limited to, the characteristics of the automotive supply chain, since the literature focusing on automotive supply chain risk management (ASCRM) is limited. The review provides a summary and a classification for the underlying supply chain risk resources in the automotive industry; and state-of-the-art research in the area is discussed, with an emphasis on the quantitative methods and mathematical models currently used. The future research topics in ASCRM are identified. Then two mathematical models are developed in this research, concentrating on supply chain risk management in the automotive industry. The first model is for optimizing manufacturer cooperation in supply chains. OEMs often invest a large amount of money in supplier development to improve suppliers’ capabilities and performance. Allocating the investment optimally among multiple suppliers to minimize risks while maintaining an acceptable level of return becomes a critical issue for manufacturers. This research develops a new non-linear investment return mathematical model for supplier development, which is more applicable in reality. The solutions of this new model can assist supply chain management in deciding investment at different levels in addition to making “yes or no” decisions. The new model is validated and verified using numerical examples. The second model is the optimal contract for new product development with the risk consideration in the automotive industry. More specifically, we investigated how to decide the supplier’s capacity and the manufacturer’s order in the supply contract in order to reduce the risks and maximize their profits when the demand of the new product is highly uncertain. Based on the newsvendor model and Stackelberg game theory, a single period two-stage supply chain model for a product development contract, consisting of a supplier and a manufacturer, is developed. A practical back induction algorithm is conducted to get subgame perfect optimal solutions for the contract model. Extensive model analyses are accomplished for various situations with theoretical results leading to conditions of solution optimality. The model is then applied to a uniform distribution for uncertain demands. Based on a real automotive supply chain case, the numerical experiments and sensitivity analyses are conducted to study the behavior and performance of the proposed model, from which some interesting managerial insights were provided. The proposed solutions provide an effective tool for making the supplier-manufacturer contracts when manufacturers face high uncertain demand. We believe that the quantitative models and solutions studied in this research have great potentials to be applied in automotive and other industries in developing the efficient supply chains involving advanced and emerging technologies

The Politics of Medicine: Power, Actors, and Ideas in the Making of Health

The practice of medicine has become the prescribing of medicine. Reflecting a construct of health defined by Rationalism, individualism, and biomedical science, medicines (pharmaceuticals) are politically constructed to be the first – and sometimes only prescribed – line of defense against illness and disease. Pharmaceuticals also represent a highly desirable, ‘recession-proof’ component of many Nation-states’ (states’) export strategies, helping advanced economies, in particular, to maintain favorable trade balances and economic growth amidst the headwinds of deindustrialization. Higher use and the overreliance on pharmaceuticals promote an outsized role for certain actors and ideas in the making of global health, referring to the systems of medical practice, the norms defining health subconsciously and consciously, the politico-economic relations and decisions that prioritize certain qualities and determinants of health, and interventions relating to health. Concentrations of power deepened under globalization, reinforcing and internationalizing specific, hegemonic ideas about health that reflect the ideas and interests of dominant actors. These dynamics further privilege certain actors and ideas in political and economic processes, which have the practical effect of predetermining outcomes. In this way, power sustains the global normative and politico-economic conditions that comprise modern health—power makes health. This dissertation employs pharmaceuticals as a proxy to examine power asymmetries and market-oriented norms relating to health. The research examines the formative ideas and structuring role of power on the political salience, interests, values, and choices of the leading actors in global health. Rather than an exclusive focus on health’s visible outcomes, the research distinguishes the influence of power asymmetries expressed through norm formation and spread. It finds that health is a core issue of the 21st century global political economy and equitable scholarly focus and practical solutioning must be applied to the ideas, contexts, content, and processes that make health

Integrated Operational and Financial Approaches in Supply Chain Risk Management

Like other relatively more established sub-areas of Supply Chain Management, Supply Chain Risk Management (SCRM) is an emerging field that mostly lacks integrative approaches across disciplines. This study attempts to narrow this gap by developing an integrated approach to SCRM using operational tools and financial instruments. The conceptualization of SCRM is examined with reference to the broader literature on risk management. A SCRM framework is developed based on our taxonomies of risk and risk management approaches. Our unit of analysis is a supply chain composed of an aluminum can supplier, a brewery and a distributor. We develop a (base) stochastic optimization model that incorporates operational and financial features of the aforementioned supply chain. The supply chain is exposed to aluminum price fluctuation and demand uncertainty. Through simulation based optimization, we compare the performance of the integrated model (under which operational and financial hedging decisions are made simultaneously) to a sequential model (under which the financial decisions are made after the operational decisions are finalized, a common practice for many supply chains even today). Using experimental designs and statistical analyses, we analyze the performance of the two models in minimizing the expected total opportunity cost of the supply chain. We examine the supply chain performance in different business environments defined by iv three factors, each at three levels: risk aversion, demand variability and aluminum price volatility. We find that the integrated model outperforms the sequential model in most cases. The results also shed light on significant variations in supply chain performance under changing business environments. Managerial insights are offered based on optimization results and statistical analyses. The base model developed is then extended in two directions. First, we incorporate lead time variability as a fourth factor and study the effects of this variability. For the second extension, we introduce exchange rate risk into our base model. We examine the variations in the benefits of hedging exchange rate risk under two risk aversion levels and different exchange rate volatilities. Managerial insights on the findings of both extensions are provided. The thesis concludes with a summary of overall findings. Areas for further research are also highlighted.N/Av, 192 p: illIncludes bibliographical reference

Intellectual Property Management in Health and Agricultural Innovation: A Handbook of Best Practices, Vol. 1

Prepared by and for policy-makers, leaders of public sector research establishments, technology transfer professionals, licensing executives, and scientists, this online resource offers up-to-date information and strategies for utilizing the power of both intellectual property and the public domain. Emphasis is placed on advancing innovation in health and agriculture, though many of the principles outlined here are broadly applicable across technology fields. Eschewing ideological debates and general proclamations, the authors always keep their eye on the practical side of IP management. The site is based on a comprehensive Handbook and Executive Guide that provide substantive discussions and analysis of the opportunities awaiting anyone in the field who wants to put intellectual property to work. This multi-volume work contains 153 chapters on a full range of IP topics and over 50 case studies, composed by over 200 authors from North, South, East, and West. If you are a policymaker, a senior administrator, a technology transfer manager, or a scientist, we invite you to use the companion site guide available at http://www.iphandbook.org/index.html The site guide distills the key points of each IP topic covered by the Handbook into simple language and places it in the context of evolving best practices specific to your professional role within the overall picture of IP management

Pharmaceutical patents and the right to access to medicines in Central America

El vínculo entre la propiedad intelectual y el derecho a la salud se ha convertido en un tema de debate central desde la conferencia ministerial de la Organización Mundial del Comercio (OMC) en 2001. En efecto, a pesar del amplio reconocimiento del derecho a la salud en la escena internacional, la cuestión de la protección efectiva y la aplicación del derecho en cuestión es tema de un debate constante. El objetivo de las patentes farmacéuticas, es proporcionar al inventor un conjunto de derechos exclusivos durante un período de tiempo determinado a cambio de la divulgación pública del medicamento recién protegido. El régimen de monopolio establecido conduce a un aumento significativo de los precios de los medicamentos, convirtiéndolos así en bienes de lujo. Esta situación suscita diversas cuestiones sobre la relación entre el derecho a la salud y las patentes de los medicamentos, entre otros, especialmente en el caso de los países en desarrollo (América Central).Desde el punto de vista jurídico, hay tres esferas principales del derecho internacional que son pertinentes para la cuestión actual: en primer lugar, el acceso a los medicamentos constituye una parte integrante del derecho a la salud, a fin de permitir que todos los seres humanos reciban atención médica, independientemente de su situación económica. Por consiguiente, en los debates actuales se discute si los medicamentos, como bienes esenciales, pueden y deben ser patentables para garantizar el acceso a los medicamentos a la gran mayoría de las personas. Este trabajo comienza, examinando el marco legal relacionado con el derecho a la salud a la luz de los principales tratados internacionales y regionales (PIDESC - Convención Americana sobre Derechos Humanos). El segundo capítulo se centra principalmente en la regulación internacional de la protección de la propiedad intelectual de los productos farmacéuticos de acuerdo con los tratados y la práctica pertinentes. Así, el capítulo ilustra las principales teorías sobre la antinomia normativa entre los tratados y proporciona un análisis del Acuerdo sobre los ADPIC. Se hace hincapié en las llamadas flexibilidades del Acuerdo sobre los ADPIC, así como en una visión general de la subsiguiente Declaración de Doha, ya que ambos marcos son de importancia central para las empresas farmacéuticas. El capítulo concluye con el análisis de la región centroamericana, que tiene como objetivo estudiar cómo los acuerdos comerciales regionales obstaculizan la protección del derecho de acceso a los medicamentos de las partes interesadas. Así pues, se presentan dos estudios de casos para ilustrar casos concretos en los que las denominadas disposiciones ADPIC-Plus han retrasado tanto a Guatemala como a Costa Rica en el cumplimiento adecuado de sus compromisos en materia de derechos humanos. Por último, en el tercer capítulo se aborda un aspecto igualmente valioso de la cuestión que se examina, es decir, la responsabilidad de las empresas farmacéuticas en materia de derechos humanos. Esos agentes económicos, desempeñan un papel fundamental para garantizar la protección del derecho de acceso a los medicamentos, ya que son los titulares y principales defensores de la protección de la propiedad intelectual de los medicamentos. En esta sección se ilustran las teorías más reconocidas sobre la personalidad jurídica internacional de esas entidades económicas peculiares con arreglo a un enfoque deductivo. De hecho, partiendo de un análisis general de las empresas multinacionales, limitando la búsqueda a fin de determinar si las empresas farmacéuticas tienen o no obligaciones en materia de derechos humanos.The bond between intellectual property and the right to health has become an area under discussion of central concern since the debates at the 2001 World Trade Organization (WTO) ministerial conference. Indeed, despite the extensive acknowledgement of the right to health at the international stage, the issue of giving effective protection and implementation of the right at stake, is under a constant debate. The aim of pharmaceutical patents is to provide the inventor with a set of exclusive rights for a determined period of time in exchange for the public disclosure of the newly released drug. The monopoly regime established leads to a significant increase in drugs prices, hence turning medicines into luxury goods. Such a situation triggers a variety of questions on the relationship between the right to health and patents on medicines, inter alia, in the case of developing countries (Central America). From a legal point of view, three major spheres of international law are relevant to the current issue: human rights law, international trade law and international responsibilities of non-State actors. In the first place, access to medicines constitutes an integral part of the right to health, in order to permit all human beings to receive medical care, regardless of their economic status. Accordingly, current debates argue whether drugs, as essential goods, can, and should, be patentable in order to secure access to drugs to the vast majority of people. This work starts by examining the legal framework related to the right to health in the light of the main international and regional treaties (ICESCR-American Convention on Human Rights). The second chapter mainly focuses on the international regulation of intellectual property protection of pharmaceutical products on the grounds of relevant treaties and practice. Thus, the chapter illustrates the main theories regarding normative antinomy between treaties and provides an analysis of the TRIPS Agreement. The emphasis regards the so-called TRIPS’ flexibilities as well as an overview of the subsequent Doha Declaration, both frameworks being of central importance for pharmaceutical companies. The chapter concludes with the analysis of the Central American region, which aims at examining whether the aforementioned CAFTA Agreement hindered the protection of the right to access to medicines for the parties concerned. Two case studies are, thus, provided in order to illustrate concrete instances in which the so-called TRIPS Plus provisions have delayed both Guatemala and Costa Rica in properly fulfilling their human rights undertakings under international law. Lastly, the third and final chapter addresses an equally valuable aspect of the issue under examination, namely the human rights responsibilities of pharmaceutical corporations. Such economic actors play a crucial role in ensuring the protection of the right to access to medicines, since they are the holders, and principal defenders, of IP protection for drugs. This section illustrates the most acknowledged theories on the legal personality of such peculiar economic entities under a deductive approach. In fact, starting from a general analysis of multinational corporations, the chapter narrows it down in order to determine whether or not pharmaceutical corporations are burdened with human rights obligations