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Innovation institutions and the opioid crisis.

Daniel J Hemel1, Lisa Larrimore Ouellette2

  • 1Assistant Professor of Law and Ronald H. Coase Research Scholar, University of Chicago Law School; Edwin A. Heafey, Jr. Visiting Professor of Law, Stanford Law School (winter 2020).

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US intellectual property (IP) law and innovation policy fueled the opioid crisis by incentivizing addictive painkillers and hindering nonaddictive alternatives. Reforms are needed to address this public health emergency.

Keywords:
innovation policyintellectual propertyopioids

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Area of Science:

  • Public Health
  • Health Policy
  • Intellectual Property Law

Background:

  • The United States faces a significant public health crisis due to opioid addiction.
  • The connection between this crisis and US intellectual property (IP) law and innovation policy has been largely overlooked.

Purpose of the Study:

  • To examine the opioid crisis through the lens of innovation policy.
  • To identify how innovation institutions have contributed to the opioid epidemic.
  • To propose reforms for innovation policy to help contain the crisis.

Main Methods:

  • Analysis of US intellectual property law and innovation policy.
  • Examination of how these policies structure incentives for knowledge goods production and allocation.
  • Review of federal subsidies and regulation of prescription drugs.

Main Results:

  • Innovation institutions encouraged the development and commercialization of addictive painkillers.
  • Policies restricted access to opioid antidotes.
  • There was a failure to facilitate investment in nonaddictive treatments for chronic pain.
  • IP protection for addictive products played a pernicious role.
  • Flaws in federal drug subsidies and regulation were exposed.

Conclusions:

  • US innovation policy is deeply intertwined with the opioid crisis.
  • The crisis challenges conventional understanding of IP law.
  • Institutional reforms are urgently needed to address the opioid epidemic and prevent future crises.