Gene Patents: Incentive or Impediment for Pharmaceutical Innovation?
AbstractThis 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.