Page 91, Footnote 42 Should Read As Follows

Corrigendum

Page 91, footnote 42 should read as follows:

"These studies include:

Kawaura, Akihiko and Sumner J. LaCroix "Japan's Shift from Process to Product patents in the Pharmaceutical Industry: An Event Study of the Impact on Japanese Firms", Economic Inquiry, 1995, 33: 88-103.

Korenko, George C. "Intellectual Property Protection and Industrial Growth: A Case Study", The Journal of World Intellectual Property, 1999, 2: 47-75.

LaCroix, Sumner J. and Akihiko Kawaura "Product Patent Reform and Its Impact on the Korean Pharmaceutical Industry", International Economic Journal, 1996, 19: 109-24.

Lanjouw, Jean O. "The Introduction of Pharmaceutical Product Patents in India: 'Heartless Exploitation of the Poor and Suffering'?", NBER Working Paper 6366, NBER, 1998.

Lanjouw, Jean O. and Iain Cockburn "Do Patents Matter?: Empirical Evidence after GATT", NBER Working Paper 7495, NBER, 2000.

Maskus, Keith "Strengthening IPRs in Lebanon" in: Hoekman, Bernard and Jamel E. Zarrouk (eds.) Catching Up with Competition: Trade Opportunities and Challenges for Arab Countries", Ann Arbor, University of Michigan Press, 2000.

Nogues, Julio "Patents and Pharmaceutical Drugs. Understanding the Pressures on Developing Countries", Journal of World Trade, 1990, 24, no. 6: 81-104.

Scherer, F.M. and Sandy Weisburst "Economic Effects of Strengthening Pharmaceutical Patent Protection in Italy", International Review of Industrial Property and Copyright Law, 1995, 26: 1009-1024.

The results vary from study to study and no general picture seems to emerge."

Page 91, footnote 43 should read as follows:

"Lanjouw, Jean O. "The Introduction of Pharmaceutical Product Patents in India: 'Heartless Exploitation of the Poor and Suffering'?", NBER Working Paper 6366, NBER, 1998."

Page 93, Box 14 "(IFPMA, 1998, 9)" should read "(IFPMA, 2000, 5)".

Page 93, the following should be inserted at the end of Box 14:

"The details of the references to this box are:

Cohen, Wesley J., Richard R. Nelson and John P. Walsh "Protecting Their Intellectual Assets: Appropriability Conditions and Why US Manufacturing Firms Patent (or Not)", Working Paper, Carnegie-Mellon University, 2000.

DiMasi, J.A., Hansen, R.W., Grabowski, H.G. and Lasagna, L. "Cost of Innovation in the Pharmaceutical Industry", Journal of Health Economics, 1991, 10: 107-142.

DiMasi, J.A., Hansen, R.W., Grabowski, H.G. and Lasagna, L. "The Price of Innovation: New Estimates of Drug Development Costs", Working Paper, Tufts Center for the Study of Drug Development, Boston, MA., 2000, (now published in Journal of Health Economics, 2003, 22: 151-185).

Grabowski, H.G. and Vernon, J. "A new look at the returns and risks to pharmaceutical R&D", Management Science, 1990, 36: 804-821.

Grabowski, H.G. and Vernon, J. "Returns to R&D on new drug introductions in the 1980s", Journal of Health Economic, 1994, 13: 383-406.

International Federation of Pharmaceutical Manufacturers' Associations (IFPMA) "Encouragement of New Clinical Drug Development: The Role of Data Exclusivity", Geneva, 2000.

Levin, Richard C., Alvin K. Klevorick, Richard R. Nelson, and Sidney G. Winter "Appropriating the Returns from Industrial Research and Development", Brookings Papers on Economic Activity, 1987: 783-820.

Mansfield, Edwin "Patents and Innovation: An Empirical Study", Management Science, 1986, 32, no. 2: 173-181.

Public Citizen "Rx R&D Myths: The Case Against The Drug Industry’s R&D 'Scare Card'", (available at www.citizen.org), 2001.

Scherer, F.M.: "The Pharmaceutical Industry", in: Culyer, A.J. and J.P. Newhouse (eds.) Handbook of Health Economics, Vol. 1, Elsevier Science B.V., 2000: 1298-1322.

Scherer, F.M. "The Link Between Gross Profitability and Pharmaceutical R&D Spending", Health Affairs, September/October 2001: 210-215."