Rippling Effect of Patenting of Pharmaceuticals in India: An Economics of Intellectual Capital Management

Abstract

The patenting of pharmaceuticals in India, particularly since the implementation of the TRIPS Agreement in 2005, has led to significant economic consequences, reshaping the country's pharmaceutical landscape. The shift from process patents to product patents has encouraged innovation, enabling multinational pharmaceutical companies to invest in the research and development of new drugs. However, this has also resulted in higher drug prices, limiting access to essential medications for low-income populations. While patenting fosters innovation, it creates monopolies, leading to pricing imbalances and limiting competition. The Indian government has sought to balance innovation with public health needs through policies such as compulsory licensing, which allows for the production of patented drugs in situations where public health is at risk. This dynamic between patenting, innovation, drug access, and government intervention continues to shape India's pharmaceutical market and has broad implications for global healthcare. The ongoing tension between protecting intellectual property and ensuring affordable access to essential medicines remains central to the discussion surrounding the economic impact of pharmaceutical patenting in India.