The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa
Abstract
The intersection of artificial intelligence (AI), intellectual property (IP) regimes, and pharmaceutical manufacturing capacity represents a critical frontier in global health governance. Nowhere is this nexus more contested than in Africa, where the African Medicines Agency (AMA) seeks to build a robust generic manufacturing base to mitigate historical dependency on imported medicines. A central friction point in this ambition is the bifurcated IP strategy employed by the People's Republic of China in its bilateral engagements with African nations. China simultaneously deploys compulsory licensing mechanisms in some contexts while enforcing stringent data exclusivity and patent linkage rules to protect its burgeoning domestic innovators in others. This paper empirically assesses how this variegated IP regime—mediated by AI-driven drug discovery and manufacturing processes—affects local generic manufacturing capacity. Utilizing a firm-level panel dataset of 142 pharmaceutical manufacturers operating in Chinese-financed industrial parks across Ethiopia, Kenya, and Nigeria (2018–2025), we employ a fixed-effects model to estimate the association between IP enforcement clauses embedded in bilateral investment treaties and firm output and R&D expenditure. Our findings challenge the binary "access vs. innovation" dichotomy. We demonstrate that strict data exclusivity clauses, when paired with AI-enabled manufacturing infrastructure, are associated with higher local generic output but lower price elasticity—indicating reduced market competition. Conversely, flexible regimes correlate with greater price elasticity but fail to attract the advanced technology transfer necessary for complex generic production. We conclude that the regulatory choice regarding IP is determinative of whether Africa becomes a mere market for finished goods or a strategic node in the global generic value chain.
Keywords
References
- Abdulwahab, A. A., Okafor, U. G., Adesuyi, D. S., Miranda, A. V., Yusuf, R. O., & Eliseo Lucero-Prisno, D. (2024). The African Medicines Agency and medicines regulation: Progress, challenges, and recommendations. Health Care Science, 3(5), 350–359. https://doi.org/10.1002/hcs2.117
- Ahen, F., & Salo-Ahen, O. M. H. (2018). Governing pharmaceutical innovations in Africa: Inclusive models for accelerating access to quality medicines. Cogent Medicine, 5(1), 1500196. https://doi.org/10.1080/2331205X.2018.1500196
- Aniche, E. T. (2023). African Continental Free Trade Area and African Union Agenda 2063: The roads to Addis Ababa and Kigali. Journal of Contemporary African Studies, 41(4), 377–392. https://doi.org/10.1080/02589001.2020.1775184
- Bhatt, P., Singh, S., Kumar, V., Nagarajan, K., Mishra, S. K., Kumar Dixit, P., Kumar, V., & Kumar, S. (2024). Artificial intelligence in pharmaceutical industry: Revolutionizing drug development and delivery. Current Artificial Intelligence, 2, e051223224198. https://doi.org/10.2174/0129503752250813231124092946
- Bontadini, F. (2021). Trade specialization and performance in global value chains. Industrial and Corporate Change, 30(6), 1557–1590.
- Cai, X. (2025). Multidimensional governance path of intellectual property protection for Chinese overseas enterprises under the CPTPP framework. Academic Journal of Business & Management, 7(9), 42–50.
- Capri, A. (2024). Techno-nationalism: How it’s reshaping trade, geopolitics and society. John Wiley & Sons.
- Cieślik, E., & Zamojska, A. (2025). Techno-nationalism in global value chains in the technology sector. European Review, 1–20.
Details
Primary Language
English
Subjects
Econometric and Statistical Methods, Regional Economy
Journal Section
Research Article
Authors
Klemens Katterbauer
0000-0001-5513-4418
Central African Republic
Sema Yılmaz
*
0000-0002-3138-1622
Türkiye
Rahmi Deniz Özbay
0000-0002-3927-8216
Türkiye
Hassan Syed
0000-0003-2114-2473
Central African Republic
Publication Date
September 26, 2026
Submission Date
April 13, 2026
Acceptance Date
July 9, 2026
Published in Issue
Year 2026 Volume: 10 Number: 2