The very example of Canada would provide sufficient evidence to conclude that there's not much link. As I mentioned, we pay the third-highest prices for patented medicines in the world, and yet the ratio of our R and D to sales pales in comparison to the countries we compare ourselves to under our regime—the PMPRB7 countries.
The original composition of that group of countries was based on the assumption that if we emulated the types of IP regimes in those countries and priced in line with them, we would come to enjoy a similar level of R and D as in those countries. Obviously, that assumption has not been borne out over time. Currently, we are at an historical low in our ratio of R and D to sales.
When the PMPRB was created, and the patent protection was strengthened for pharmaceuticals, the industry committed to doubling their ratio of R and D to sales from 5% to 10%. It currently stands at about 4.4%, versus over 20% R and D to sales in the countries we compare ourselves to on average under the PMPRB7.
I would say that one need look no further than the Canadian experience to draw that conclusion. There is no empirical evidence, and I'm not aware of any studies that suggest an organic connection between IP and R and D, or price and R and D.
Most of the countries in the PMPRB7 have lower prices and more R and D than us. Also, the same can be said of Austria, Norway and Australia.