the 5th globelics academy ph.d. school on ‘ national innovation systems and economic development...
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The 5th Globelics Academy Ph.D. School on ‘National Innovation Systems and Economic Development’
2–14 June, 2008, Tampere – Finland
Nejla YACOUBNejla YACOUB
University of Economics and Management of Tunis -TUNISIA-University of Economics and Management of Tunis -TUNISIA-
Ph.D. Student in Industrial EconomicsPh.D. Student in Industrial Economics
University of Littoral Côte d’Opale (ULCO) of Dunkerque -FRANCE-University of Littoral Côte d’Opale (ULCO) of Dunkerque -FRANCE-
Is Patent Protection an Incentive Is Patent Protection an Incentive for Innovation?for Innovation?
Literature and Case Study of the Tunisian Literature and Case Study of the Tunisian Pharmaceutical IndustryPharmaceutical Industry
Topic
MotivationsMotivations
1- Why this topic ? 1- Why this topic ? Controversies about the effects of patents Controversies about the effects of patents
on Innovationon Innovation
2- Why Pharmaceuticals ?2- Why Pharmaceuticals ? Patentability of pharmaceuticalsPatentability of pharmaceuticals
3- Why Tunisia ?3- Why Tunisia ? Pharmaceutical patents since January 2005Pharmaceutical patents since January 2005 Emphasis on the production of genericsEmphasis on the production of generics
Main QuestionMain Question
What Impacts Would What Impacts Would Patents have on the Patents have on the
Pharmaceutical Innovation Pharmaceutical Innovation in Tunisia ?in Tunisia ?
Axes of the Axes of the PresentationPresentation
1.1. The pharmaceutical industry in Tunisia, The pharmaceutical industry in Tunisia, the focus on the production of genericsthe focus on the production of generics
2.2. Advantages and limits of a Advantages and limits of a pharmaceutical industry based on the pharmaceutical industry based on the production of genericsproduction of generics
3.3. The role of patent protection in promoting The role of patent protection in promoting the pharmaceutical innovation in Tunisiathe pharmaceutical innovation in Tunisia
GenericsGenerics
Copies of the brand-name drug whose Copies of the brand-name drug whose patent expired (20 years)patent expired (20 years)
WHO: Tight control => generics have WHO: Tight control => generics have the same quality as the brand-name the same quality as the brand-name drugsdrugs
Much less expensive <= they are free Much less expensive <= they are free from expenditures in R&Dfrom expenditures in R&D
Axes of the Axes of the PresentationPresentation
1. The pharmaceutical industry in Tunisia, 1. The pharmaceutical industry in Tunisia, the focus on the production of genericsthe focus on the production of generics
2. Advantages and limits of a 2. Advantages and limits of a pharmaceutical industry based on the pharmaceutical industry based on the production of genericsproduction of generics
3. The role of patent protection in 3. The role of patent protection in promoting the pharmaceutical promoting the pharmaceutical innovation in Tunisiainnovation in Tunisia
Characteristics of the Tunisian Characteristics of the Tunisian Pharmaceutical IndustryPharmaceutical Industry
2
23
5
Public Private Foreign
Ministry of Public Health, 2008
Pharmaceutical Laboratories in Tunisia
30 pharmaceutical firms
The Pharmaceutical Industry in Tunisia
Local production: 50% in 2007 (8% in 1987)
8
44
50
0 5 10 15 20 25 30 35 40 45 50
1987
1999
2007
Ministry of Public Health, 2008
The Local ProductionThe Local Production
49% licensed 49% licensed drugsdrugs
51% generics51% generics
Exports: 5 to 7% Exports: 5 to 7% of genericsof generics
51%
49%
Generics Licenses
The Distribution Network of Pharmaceuticals in Tunisia
Foreign Suppliers
Central Pharmacy of TunisiaHospitals
Wholesalers
Local Producers
Other Structures Pharmacies
50%50%
The Government’s The Government’s ObjectivesObjectives
Increase the share of the local production Increase the share of the local production
Improve the production of genericsImprove the production of generics
Encouraging Measures for Encouraging Measures for GenericsGenerics
After the last reform of the social security After the last reform of the social security system (2007), the National Fund of system (2007), the National Fund of Health Insurance reimburses patients on Health Insurance reimburses patients on the basis of the least expensive the basis of the least expensive therapeutic equivalenttherapeutic equivalent
Enhance the market demand for genericsEnhance the market demand for generics
Axes of the Axes of the PresentationPresentation
1. The pharmaceutical industry in Tunisia, 1. The pharmaceutical industry in Tunisia, the focus on the production of genericsthe focus on the production of generics
2. Advantages and limits of a 2. Advantages and limits of a pharmaceutical industry based on the pharmaceutical industry based on the production of genericsproduction of generics
3. The role of patent protection in 3. The role of patent protection in promoting the pharmaceutical promoting the pharmaceutical innovation in Tunisiainnovation in Tunisia
Benefits in terms of CostsBenefits in terms of Costs
Control drugs’ prices Control drugs’ prices
Reduce health expenditures Reduce health expenditures
Accessible drugs to lower-income Accessible drugs to lower-income patientspatients
Local production of generics Local production of generics contributes at saving currencycontributes at saving currency
((very important goal for Tunisia after the continuous very important goal for Tunisia after the continuous appreciation of the Euro against the Dinarappreciation of the Euro against the Dinar))
Benefits for the Local Benefits for the Local IndustryIndustry
Consolidate the local industrial tissueConsolidate the local industrial tissue
Reduce unemploymentReduce unemployment
Increase exports => ameliorate the trade Increase exports => ameliorate the trade balancebalance
Attract multinational firms and benefit from FDI Attract multinational firms and benefit from FDI in terms of technological transfer, employment, in terms of technological transfer, employment, ……
Generics producers preserve their independencyGenerics producers preserve their independency
LimitsLimits
Local firms are also dependent to foreign Local firms are also dependent to foreign laboratories (just copies)laboratories (just copies)
Local firms submit to a period of “inertia” Local firms submit to a period of “inertia” equal to the patent life of the brand name equal to the patent life of the brand name drug drug
bad effects when dealing with dangerous bad effects when dealing with dangerous diseasesdiseases
Spread a sort of “passiveness” instead of Spread a sort of “passiveness” instead of enhancing the sense of creativeness and enhancing the sense of creativeness and inventivenessinventiveness
Axes of the Axes of the PresentationPresentation
1. The pharmaceutical industry in Tunisia, 1. The pharmaceutical industry in Tunisia, the focus on the production of genericsthe focus on the production of generics
2. Advantages and limits of a 2. Advantages and limits of a pharmaceutical industry based on the pharmaceutical industry based on the production of genericsproduction of generics
3. The role of patent protection in 3. The role of patent protection in promoting the pharmaceutical promoting the pharmaceutical innovation in Tunisiainnovation in Tunisia
An Encouraging Legal FrameworkAn Encouraging Legal Framework
Research units : 260 in 2005, Research units : 260 in 2005, 23% of them are laboratories of 23% of them are laboratories of medical studiesmedical studies
Exchanging program with Exchanging program with foreign researchers in prior and foreign researchers in prior and strategic fields (energy, strategic fields (energy, biotechnologies and health)biotechnologies and health)
Human ResourcesHuman Resources
School enrollment in higher education: School enrollment in higher education: 29% (2005) (12,2% Morocco, 15% 29% (2005) (12,2% Morocco, 15% Algeria)Algeria)
0,44% pharmacy students0,44% pharmacy students
Few number of Tunisian pharmacy Few number of Tunisian pharmacy students carry out pharmaceutical students carry out pharmaceutical researches in Tunisiaresearches in Tunisia
IImmigration to developed mmigration to developed countries (Europe)countries (Europe)
Financial ResourcesFinancial Resources
600 million€, 2006 600 million€, 2006 whole pharmaceutical sector whole pharmaceutical sector
Pharmaceutical R&D requires huge fundsPharmaceutical R&D requires huge funds
Special raw materials : very expensive + sometimes Special raw materials : very expensive + sometimes non available for some developing countriesnon available for some developing countries
Immigration to developed countries
Decrease in the innovation capabilities
Innovation Output Indicator Innovation Output Indicator PharmaceuticalPharmaceutical
Patent Grants in Tunisia (50%)Patent Grants in Tunisia (50%)
142113340
50
100
150
200
250
300
Total
US
Tunisian
National Institute of Standardization and Industrial Property (INNORPI, 2008)
Pharmaceutical Patents
Technological transfer => Technological transfer => access to new technologiesaccess to new technologies
-Promote local innovation spiritPromote local innovation spirit
-Improve local innovation Improve local innovation CapabilitiesCapabilities
-Encourage pharmaceutical Encourage pharmaceutical InnovationInnovation
In the In the short-short-termterm
In the In the long-long-termterm
-Increase prices of patented Increase prices of patented drugsdrugs
-Limit access of lower-income Limit access of lower-income people to patented drugspeople to patented drugs
-Encourage the production of genericsEncourage the production of generics
- Promote exports of genericsPromote exports of generics
-Attract FDI + employmentAttract FDI + employment
“Might”
To Conclude To Conclude … …
In pharmacy education, put a more emphasis on In pharmacy education, put a more emphasis on applied researchesapplied researches
Reduce bureaucracy and complicated Reduce bureaucracy and complicated administrative proceduresadministrative procedures facilitate access to facilitate access to informationinformation
Alternative sources of financing (Cooperation with Alternative sources of financing (Cooperation with foreign firms + privatization)foreign firms + privatization)
Keep encouraging the production of genericsKeep encouraging the production of generics in in order to assure the access of all patients to order to assure the access of all patients to essential drugs + Combine the short term effects essential drugs + Combine the short term effects of generics with the long term effects of patents.of generics with the long term effects of patents.
ChokraneChokrane
Thank You For Your Attention ...Thank You For Your Attention ...
MerciMerci
KiitosKiitosGraciasGracias ObrigObrigadoado
SpaciboSpacibo
MotashakkeramMotashakkeram
EfharistoEfharisto TaTakk
TesekkurTesekkurMultumesc Multumesc
DhanyavadDhanyavad
XièXieXièXie
TänanTänan
Terima KasihTerima Kasih
Köszönöm