Gene Patents: Incentive or Impediment for Pharmaceutical Innovation?

Authors

  • Yu-Ching Kuo
  • Mei Hsiu-Ching Ho

Abstract

This research explores biopharmaceutical companies’ behavior of obtaining patentprotection under the tightened patentability standard for biotechnology innovation. To explore theimportance of innovations, we collected time-series data from twenty firms over two decades andexamined the role of biotechnology on a firm’s operating performance and profit via an empiricalregression model. The results suggest that greater R&D investment brings firms higher revenue andprofit, but a more influential patent does not seem to reward all companies. The possession ofbiotechnology can help companies increase revenue. For large-scale R&D firms, marketinginvolvement is particularly important to boost revenue, but low-scale R&D firms should avoidhaving a high ratio of biotechnology in their patent portfolio strategy.

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Published

2023-06-08

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Section

Articles