Effectiveness of contractual relationships in the face of failures in the biotechnology patent system.

Summary The biotechnology patent system has inherent deficiencies when the subject matter of biotechnology research is introduced. These shortcomings are reflected, on the one hand, in the growing number of legal conflicts that arise in this sector and, on the other hand, in a slowdown in the scientific emulation necessary for the progress of science and technology. In order to compensate for these deficiencies, a market for the insurance of the costs of legal conflicts tends to be set up. These insurances do not contribute to the efficiency of the patent system and of the sector, as they encourage innovators to claim broad patents, thus encouraging legal conflicts and slowing down the dynamics of innovation. R&D contracts are another way of getting around the failings of the patent system, but here again, inefficiencies arise insofar as it is generally the innovative SMEs that take charge of patent defense.