Biotechnology patenting in small countries - strategies for the international marketplace

Abstract

The article investigates the conventional strategy for obtaining international patent protection by starting with the national patent application then converting it to the international Patent Cooperation Treaty (PCT) patent application and filing for a national phase in the jurisdiction(s) of interest, in the context of biotechnology start-ups in small countries. Specifically, we investigate whether such strategy is detrimental or beneficial for the eventual entry to the U.S. market. An empirical study of Lithuanian biotech start-ups is presented, producing evidence that many firms did not benefit from going through the traditional strategy. Eventual strategic choices may depend on the goals the firm wants to achieve, as well as its resources available for international patenting. If the firm intends to license the technology which is the subject matter of the patent application, or attract U.S.- based venture capital, it may benefit from tailoring the patent application to the U.S. and filing there at an early (or at least earlier) stage.