[Ip-health] Alternatives to the Patent System that are used to Support R&D Efforts, Including both Push and Pull Mechanisms, with a Special Focus on Innovation-Inducement Prizes and Open Source Development Models

Jamie Love james.love at keionline.org
Fri Oct 17 07:00:50 PDT 2014


This is a link to a new WIPO publication on alternatives to the patent
system.  It is broken into different parts, and at the request of WIPO,
covers a lot of topics.

The first 44 page are a discussion of grants, contracts, tax policies and a
brief introduction to innovation prizes.

Annex A compares prizes, grants and patents, using stylized economic models
to see when one is preferred to another.

Annex C is an extended discussion of proposals for new approaches to
innovation for antibiotics.


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http://www.wipo.int/meetings/en/doc_details.jsp?doc_id=287218

EXECUTIVE SUMMARY 4
1.  INTRODUCTION 4
2.  SURVEY AND TAXONOMY OF INNOVATION-INDUCEMENT REWARDS AND PROTECTIONS
FOR CREATIVITY, INVENTION, AND INNOVATION 5

2.1.  RESEARCH GRANTS AND CONTRACTS 5

2.1.1.  Sources of funding for grants and research contracts 6
2.1.2.  World Trade Organization regulation of research and development
subsidies 12
2.1.3  Global public sector outlays on health R&D 12
2.1.4.  Access 14
2.1.5.  Intellectual property rights on government funded research 15

ANNEX TO SECTION 2.1. 26

2.2  TAX POLICIES 28

2.2.1  Tax Credits 28
2.2.2.  Enhanced Deductions 29
2.2.3.  The US Orphan Drug Tax Credit 30
2.2.4.  Orphan Oncology Drugs, 2011-2012 33
2.2.5.  Taxing remittance of pharmaceutical profits 34
2.2.6.  Reinvesting natural resource revenues in R&D projects 35
2.2.7.  Notes on Taxes compared to grants or research contracts 35

2.3.  SELECTED NON-PATENT PULL MECHANISMS THAT RELY ON MONOPOLIES AND HIGH
PRICES 37

2.3.1  Orphan drug exclusivity 37
2.3.2.  Pediatric Testing 38
2.3.3.  Rights to Rely upon Regulatory Test data 38

2.4  INNOVATION INDUCEMENT PRIZES 40

2.4.1  Definitions 42
2.4.2.  Considerations in the management of innovation inducement prizes. 44


ANNEX A:  COMPARISONS OF GRANTS, PRIZES AND PATENTS 44

1.  GRANTS VERSUS PRIZES 44
Case 1:  There are 2 of 20 able suppliers of the innovation 45
Case 2:  10 of 20 able suppliers of the innovation 46
Take home message 47

2.  MONEY PRIZES COMPARED TO PATENT RIGHTS, PART 1 48
Prizes versus Patents, as regards access to innovations 48
Patents versus prizes - with a single price 48
Patents versus prizes - with perfect price discrimination 49
Patents versus prizes - with imperfect price discrimination 49
Take home message 51
Prizes versus Patents, as regards value for money 51
Take home message 52

3.  PRIZE DESIGNS 52

4.  MONEY PRIZES COMPARED TO PATENT RIGHTS, PART 2 53
Divergence between private and social values of innovations 53
Uncertainly 53

5.  THE SIZE OF THE REWARDS 53

ANNEX B:  SELECTED EXAMPLES OF INNOVATION INDUCEMENT PRIZES 54
MEDICAL TECHNOLOGIES 55

Prize4Life 55
The 2013 NHS Innovation Challenge Prizes 57
EARLY ARCHITECTURAL PRIZES 58
TEXTILES 60
The Lyon Prize Fund to Foster Local Silk Industry 60
A Privilege Fund to Support  Knowledge of Windmill Technology Diffusion:
 The Venetian Privilege Fund (1332) 60
PLASTICS 61
The 1863 Billiard Ball Prize, and the development of the modern plastics
industry 61
AGRICULTURAL AND FOOD 62
Food Related Prizes to Feed a Growing Population in France 62
Prize for source of fertilizer less expensive than guano 62
Agricultural Prizes to Promote Nation-Specific Solutions: Burkina Faso
Innovation Prizes (1994) 62
Australian Department of Agriculture, Fisheries, and Forestry (DAFF)
Science and Innovation Awards for Young People in Agriculture, Fisheries,
and Forestry 63
Annual Agri-Food Innovation Prizes to Encourage Canadian Rural Communities
and Agricultural Industries 63
20TH AND 21TH CENTURY AERONAUTICS PRIZES 64
PRIZES WITH ENVIRONMENTAL EFFECTS 65
Premium for the Prevention of Smoke (1855) 65
Grainger Challenges (2005) 65
Unlock the Value Mining Prize (2007) 65
Prize for Innovation in Clean Energy Technologies for the Future, the
General Electric Ecomagination Challenge (2010, 2011) 65
MISCELLANEOUS PRIZES 66
Prize for Best Software to Predict Film Ratings by Users, the Netflix Prize
(2009) 66
Public Competition for Ideas and Software Apps to Improve the Lives of
Citizens, Businesses and Tourists in Rio de Janeiro:  Rio Ideias and
RioApps (2013) 66
INNOCENTIVE MANAGED PRIZES 67
Nature Innovation Pavilion 67
The Economist Innovation Pavilion 68
Developing Country Innovation Pavilion 69
Public Good Pavilion 70
InnoCentive’s Intellectual property policies 71

ANNEX C:  APPROACHES TO SIMULATING INNOVATION FOR THE DEVELOPMENT OF NEW
ANTIBIOTIC DRUGS 74

INTRODUCTION 75

(1)  R&D SUBSIDIES. 75
(2)  POLICIES REGARDING REGULATORY BARRIERS FOR REGISTERING PRODUCTS. 76
(3)  EXTENDING TERMS FOR PATENTS AND OTHER INTELLECTUAL PROPERTY RIGHTS 76
(4)  INNOVATION INDUCEMENT PRIZE TYPE INCENTIVES TO REWARD INNOVATION
AND/OR CONSERVATION 77
Innovation Inducement Prizes 77
Antibiotic Conservation and Effectiveness (ACE) program 78
Strategic Antibiotic Reserve (SAR) 79
Pricing of antibiotics 80
Antibiotics Health Impact Fund (aHIF) 80
Antibiotics Innovation Funding Mechanism (AIFM). 81
(5)  OTHER 82
Pigouvian Taxes 82
Antibiotic Innovation and Conservation (AIC) fee 82
Transferable Patent Extensions 83
Transferable Priority Review Vouchers 84
Advanced Marketing Commitment (AMC), and Advanced Purchase Commitment (APC)
85
Call options for antibiotics 86



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