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International trade in branded and generic products

机译：品牌和非专利产品的国际贸易

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摘要

This paper investigates international competition between an innovating firm in a developed economy and generic producers in developing countries. Initially, the innovating firm in a developed country exports the branded product to a developing country. Once a patent expires or when the government grants a licence to local firms to produce generic equivalents, the innovating firm is forced to compete with generic producers. Under certain conditions, entry of generic firms reduces the price of the branded product and a generic competition paradox does not occur. There are two possible long-run equilibrium solutions. In one scenario, the innovating firm which exports the branded product and the local generic producers may coexist in the developing country. In the other scenario, the brand producer exits and a trade reversal may occur, that is, the developing country may even export the generic products to the developed economy.
机译：本文研究了发达经济体中的创新企业与发展中国家的仿制药生产商之间的国际竞争。最初，发达国家的创新公司将品牌产品出口到发展中国家。专利到期后，或者当政府授予本地公司生产仿制药的许可时，创新公司将被迫与仿制药生产商竞争。在某些情况下，仿制药公司的进入降低了品牌产品的价格，并且不会发生仿制药竞争悖论。有两种可能的长期均衡解决方案。在一种情况下，出口品牌产品的创新公司和当地的仿制药生产商可能在发展中国家共存。在另一种情况下，品牌生产商退出并可能发生贸易逆转，也就是说，发展中国家甚至可能将非专利产品出口到发达经济体。

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