(iPoster) Examining the Impact of India’s 2005 Patents Amendment Act Using SDID Approach

• In Event: Poster Session: International Political Economy I & Perspectives on Canadian Foreign Policy
  In Poster Session: Poster Session: International Political Economy I

Abstract

This study examines the impact of India’s Patents (Amendment) Act, 2005, a landmark legislative reform undertaken to align with the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, on the nation’s patenting activity. Utilizing the Synthetic Difference-in-Differences (SDID) methodology, this research constructs a robust synthetic control group—“Synthetic India”—from a pool of countries with lower pre-reform intellectual property regime scores (Park Index, 2008). By combining the strengths of Difference-in-Differences (DID) and Synthetic Control (SC) methods, this approach addresses inherent limitations in traditional causal inference techniques, such as non-parallel pre-treatment trends, to deliver more precise and reliable estimates.

The findings reveal a substantial post-reform increase in India’s patent applications, indicating that the reform successfully catalyzed innovation while adhering to global intellectual property standards. Specifically, the results highlight a significant rise in patenting activity across critical sectors such as pharmaceuticals, chemicals, and biotechnology, demonstrating the reform’s role in incentivizing research and development (R&D). This analysis further explores the balance between fostering innovation and maintaining public access, underscored by judicial interpretations of key provisions like Section 3(d), which prevents "evergreening" of patents to ensure affordability of essential goods.

Through a rigorous methodological framework, this study offers actionable insights into the broader implications of TRIPS-compliant policies for developing economies. It underscores the potential of well-crafted intellectual property rights (IPR) reforms to drive innovation, promote economic growth, and align with global governance standards while safeguarding public welfare. The study contributes to the ongoing discourse on reimagining public policy in times of crisis, particularly in navigating the intersection of national priorities and international obligations, offering a replicable model for other nations striving to enhance their innovation ecosystems in an equitable and sustainable manner.

Author

• Sonali Singh, University of Texas at Dallas