Patent Protection and Pharmaceutical R&D Spending in Canada

Bohumir Pazderka

Canadian Public Policy, 1999, vol. 25, issue 1, 29-46

Abstract: After almost two decades of compulsory licensing of prescription drugs, Canada restored full patent protection in two legislative steps taken in 1987 and 1992. The paper investigates the impact of the strengthening of intellectual property rights on corporate R&D spending in the Canadian pharmaceutical industry. Interindustry comparisons of R&D spending trends within Canada, intercountry comparisons of R&D spending trends within the pharmaceutical industry, as well as trends in Canada's share of foreign R&D spending of US-owned multinationals suggest a statistically significant increase in Canadian pharmaceutical R&D spending after 1987.

Date: 1999
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