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Due to the high technique intensity and large expenditure on R&D, patent always plays an important role in the developing of pharmaceutical industry. With the signing of TRIPS agreement, the new patent system shows a significantly effect to pharmaceutical innovation in developing country. In this paper, the author combined the economic theory and previous studies to indicate that the gradually improved patent system stimulates the incentive for pharmaceutical innovation in China. However, after analyzing the effect of TRIPS agreement to India and Brazil’s pharmaceutical innovation, I conclude that the strict patent protection caused by TRIPS agreement actually could deteriorate the result of pharmaceutical innovation in India and Brazil. Since China faces the same situation with India and Brazil, this conclusion would also be found in China. At the end of the paper, the author provided some suggestions to Chinese government based on the cases happened in India and Brazil.

The Pharmaceutical Innovation and the Patent System After TRIPS in China–Using Developing Countries Cases to Analyze