A review of the health and economic implications of patent protection, with a specific focus on Thailand

ABSTRACT: BACKGROUND: Although it has been two decades since the Thai Patent Act was amended to comply with theAgreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), there has beenlittle emphasis given to assessing the implications of this amendment. The purpose of thisreview is to summarize the health and economic impact of patent protection, with a focus onthe experience of Thailand. METHODS: A review of national and international empirical evidence on the health and economicimplications of patents from 1980 to 2009 was undertaken. RESULTS: The findings illustrate the role of patent protection in four areas: price, present access, futureaccess, and international trade and investment. Forty-four empirical studies were found, threeof which were from Thai databases. Patenting does increase price, although the size of effectdiffers according to the methodology and country. Although weakening patent rights couldincrease present access, evidence suggests that strengthening patenting may benefit futureaccess; although this is based on complex assumptions and estimations. Moreover, whilepatent protection appears to have a positive impact on trade flow, the implication for foreigndirect investment (FDI) is equivocal. CONCLUSIONS: Empirical studies in Thailand, and other similar countries, are rare, compromising therobustness and generalizability of conclusions. However, evidence does suggest thatpatenting presents a significant inter-temporal challenge in balancing aspects of currentversus future access to technologies. This underlines the urgent need to prioritize healthresearch resources to assess the wider implications of patent protection.