This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities or third party. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Latvia was not an OECD member country at the time of preparation of this publication. Accordingly, Latvia does not appear in the list of OECD member countries and is not included in the zone aggregates.
Patent holders frequently attempt to mitigate the loss of monopoly power by authorizing generic entry prior to patent expiry (early entry). Competition in off-patent pharmaceutical markets may be adversely affected if early entry substantially impairs the attractiveness of subsequent market entry. I examine generic entry decisions made in the course of recent patent expiries to quantify the impact of early entry on incentives for generic entry. Using unique micro data and accounting for the endogeneity of early entry, I estimate recursive bivariate probit models of entry. Drug markets' pre-entry revenues largely determine both independent generic entry and early entry decisions. Early entry in turn has no significant impact on the likelihood of generic entry. Original drug producers appear to authorize generic entry prior to loss of exclusivity primarily fueled by rent-seeking rather than strategic entry-deterrence motives.
This paper presents the findings of a recent OECD project on the measurement of the link between public procurement and innovation. Taking the OECD science and technology measurement frameworks as the starting point, the report highlights what concepts, definitions and measurement approaches can be used, with currently available data or suitably adapted sources, to produce policyrelevant indicators on the use of innovation procurement and carry out empirical analyses on the impact of public procurement on R&D, innovation and broader economic outcomes. Exploiting recent R&D and innovation survey data as well as administrative procurement records, the report provides novel multi-country evidence on the incidence of public procurement of innovation by firm size and industry. An exploratory analysis based on linked procurement, company accounts, R&D, patent and trademark data is employed to showcase the use of combined micro-data sources for analytical applications and points out important links between firm-level procurement activity, R&D and economic performance. This project has demonstrated: The relevance of the Oslo Manual framework, subject to potential extensions and complementary guidance, for capturing the role of public demand in driving innovation and the feasibility of asking relevant questions on this subject. The case for more widespread available and better-quality procurement records, for accountability and analytical purposes. The importance of data-linking as a mechanism for supporting the empirical analysis of the link between public procurement, innovation and business performance.The conclusions of the project are intended to contribute to the evidence considered in the review and implementation of the OECD measurement frameworks for R&D and innovation, and may also be of relevance to parallel OECD initiatives aimed at improving the statistical measurement and governance of public procurement policies and practices.
This paper investigates the factors that influence the international mobility of research scientists using a new measure of mobility derived from changes in affiliations reported by publishing scientists in a major global index of scholarly publications over the period 1996-2011. Using a gravity-based empirical framework, our research shows that measures of geographic and socioeconomic and scientific distance correlate negatively with scientist mobility between two countries. Scientific collaboration appears to be a major factor associated with the mobility of scientists. The analysis shows that the mobility of scientists particularly relies on flows of tertiary-level students in the opposite direction, from destination to origin country. This provides strong evidence that brain circulation is a complex and multi-directional phenomenon. For a majority of country pairs (dyads) in our sample, the mobility of scientists is generally better described by commensurate knowledge flows in both directions, rather than one dominating the other. The analysis also shows that mobility can be positively influenced by convergence in economic conditions and resources dedicated to R&D, as well as reduced visa-related restrictions.
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