Dynamics affecting Patent Restrictions in developing countries
Trade-off benefits of options for various approaches. Japan promoted incremental innovation (which introduces product patents & maintains reasonable drug prices, without discouraging innovation by domestic firms--coordinated policy instruments, i.e. narrow patent scope, adequate patentability, and cross-licensing). India’s new patent policy demonstrates that developing countries may want to shorten the exclusivity period on new drugs by, inter alia, raising the hurdle on patentability (which will strengthen the competitiveness of domestic firms in global generics markets, but may reduce incentives to invest in incremental innovation in domestic markets).