The International Political Economy of Intellectual Property Rights
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The International Political Economy of Intellectual Property Rights

Meir Perez Pugatch

This book investigates the realm of intellectual property rights (IPRs) within the context of international political economy. In particular, it examines the extent to which powerful interest groups, such as pharmaceutical multinational companies, influence the political dynamism underlying the field of IPRs. Meir Perez Pugatch argues that a pure economic approach does not provide a sufficient or satisfactory explanation for the creation of intellectual property rights, most notably patents. The author instead suggests that a dynamic approach, based on the international political economy of interest groups and systemic outcomes, provides a better starting point for explaining how the international intellectual property agenda is determined.
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Chapter 4: The Advanced Pharmaceutical Industry in Europe and IPRs

Meir Perez Pugatch


4.1 INTRODUCTION In previous chapters we established that the internationalization of IPRs cannot be explained by a pure economic approach. It is linked, rather, to the political activities of developed countries seeking to secure the interests of key IP-based groups. The advanced pharmaceutical industry is one of the important players, perhaps the most important one, in the field of IPRs. By focusing on its interests, organizational structure and activities, this book provides a solid basis for understanding the determination of the international IP agenda. Linking the advanced pharmaceutical industry in Europe with the TRIPs agreement is a multiphased task. Initially, it is necessary to make an analysis of the advanced pharmaceutical industry in Europe and, most importantly, to understand why IPRs are so crucial to its well-being. That is the purpose of the current chapter, which focuses on three major elements. First, it provides a general overview of the world pharmaceutical industry while elaborating on the attributes and characteristics of the advanced pharmaceutical industry. Secondly, the chapter focuses on Europe, identifying the sources of strength and weakness of the European pharmaceutical sector. Finally, the chapter places particular emphasis on the importance of IPRs to the advanced pharmaceutical industry. In other words it explains why IPRs provide such a powerful incentive for collective action to the advanced pharmaceutical industry in Europe. The term ʻadvanced pharmaceutical industryʼ refers to pharmaceutical companies who are able to create new products by undertaking extensive R&D projects. Terms such as research-based pharmaceutical MNCs, pharmaceutical MNCs,...

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