Strong IP ecosystems drive biotech R&D and investment, report shows

Stronger intellectual property protection statistically correlates with increased development of cutting-edge therapies and greater investment in life sciences research, according to a closely watched U.S. Chamber of Commerce study.

Across all types of industries, countries with strong IP rights feature more nimble, growth-oriented economies that are open to innovation and the utilization of the latest technologies, according to the International IP Index Statistical Annex, which was announced in August and produced by the Chamber’s Global Innovation Policy Center.

As for biotech, the Statistical Annex highlighted several benefits to maintaining high scores in IP protection. For example: “Economies that score 50% or more on the Index’s life sciences–related indicator host over eight times more clinical trials than low-scoring economies.”

An accompaniment to the Chamber’s 14th IP Index, the Annex is seen as one of the most powerful components of the Index because it demonstrates to global governments why it matters that they invest in more effective IP standards.

“The Index’s Statistical Annex shows a consistent pattern,” writes Kelly Anderson, VP International Policy at the U.S. Chamber of Commerce. “Economies with stronger IP systems are more innovative, attract more investment, become more competitive, and are better positioned to develop and deploy the technologies that will drive future growth.”

Hosting more clinical trials

Biotech is one of the most research-intensive industries, and is therefore an industry that is heavily reliant on IP, as the Statistical Annex confirms.

The Statistical Annex looks at several measures of biotech innovation using the number of clinical trials a country hosts as a metric. For example, it found that countries with strong biopharmaceutical IP rights are much more likely to have higher clinical trial activity.

This is especially true of cutting-edge research and first-in-human clinical trials.

“Economies that maintain robust IP environments tend to see over 15 times more early-phase clinical trials on average compared with economies whose life sciences–related IP environments trail behind,” according to the Statistical Annex.

The Statistical Annex also finds a close correlation between economies with strong life-sciences IP protections and those that host more trials in gene-, cellular- or protein-based therapies. There is a similar situation in oncology.

“Economies with strong to robust IP frameworks for the life-sciences host over 14 times more clinical trials on innovative oncology drugs compared with economies with a weaker environment,” the Statistical Annex says.

General economic benefits of strong IP

General economic benefits revealed by the Statistical Index include close correlations between strong IP protections and:

• Preparedness for the future of growth.
• Greater capacity for innovation and technological absorption.
• Attractiveness for foreign investment.
• Ability to achieve a strong innovation capability.
• Environments that are conducive to innovation.
• Companies that are more likely to spend on R&D.
• Greater attractiveness to investors.
• Better positioning for competing in the global innovation arena.
• Inventive intensity.
• Growth of high-tech sectors.

Read: The International IP Index Statistical Annex.

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