Table 5.

Empirical studies of the implications of patenting on incentive to invent new medicine

Authors/Ref.no.	Period	Setting (Country/medicines)	Objectives	Model	Method
Grootendorst(2007)/ [42]	1988-2002	Canada, prescription medicine expenditure	The implications of patent policies (Bills C-22 and C-91) on medicine expenditure and on R&D activity	Modelling	1. Estimating the medicine expenditures as a function of year dummies and lagged public drug expenditures, while controlling for a vector of other covariates that could affect drug spending. 2.Estimating R&D expenditure whose patent policy changed as an influenced factor
Hughes et al. (2002)/[43]	2001	USA	The effect of patent termination on current and future patients	Modelling	From models developed by various scholars during 1987–2002, five step models were estimated:1) the effect of patent termination on total revenue, 2) the effect of total revenue on R&D budget, 3) the effect of R&D budget on new medicine development, 4) the effect of new medicine on life year and 5) life year in monetary term
Giaccotto C. et al. (2005)/[44]	1980-2001	USA	The effect of price control policy on number of new drugs	Modelling	Estimating the decreased R&D budget as a function of five main items (price, GDP, foreign sales, dummy variables representing the years for which the Kefauver-Harris amendment and the Waxman-Hatch Act). The value of forgone R&D was then used to calculate the number of forgone drugs by dividing with $802 million (cost of R&D per drug)
Colleen (2003)/[45]	1980-1990	USA, six compulsory licensing (CL) medicines	The rate of innovation activities of pharmaceutical companies after CL	Observational study	Observing the rate of patenting and other measures of inventive activity five years before and after CL