Paper to be presented at the DRUID Summer Conference on “Industrial Dynamics of the New and Old Economy – who is embracing whom?” Copenhagen/Elsinore 6-8 June 2002 Theme E New Competition Policies and Intellectual Property Rights PATENTS AND PHARMACEUTICALS IN THE UK: AN INSIGHT INTO THE PATENTING PROCESS Henrique Barros * & Paul Stoneman Technological Innovations Research Unit - Marketing and Strategic Management Group Warwick Business School - University of Warwick Coventry - CV4 7AL - UK Phone: +44 (0)24 7652 2249 Fax: +44 (0)24 7652 4650 May 2002 Abstract The purpose of this paper is to present some findings of how UK pharmaceutical firms use the patenting process to help in getting excludability in the marketplace, and why those firms file patent applications. A qualitative approach was used to investigate that topic. In particular, we run semi-structured interviews with the personnel who head the decision-making process concerned with patents. A common response on why firms engage in the patenting process was the long development time of a new product, and the costs associated with that. As patents help in keeping imitators apart those who come up with new technical knowledge are more likely to recoup the investments in R&D. Excludability is also sought by patenting, in the major markets, several embodiments of the invention in the form of either a single patent or a series of patents, and by patenting complementary technologies that come out along the R&D process. Key words: patents, intellectual property, pharmaceutical industry, innovation, UK JEL Classification: O34, K11 and L65 * Corresponding Author: H.M.Barros@warwick.ac.uk