Research Article

The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa

Volume: 10 Number: 2 September 26, 2026
TR EN

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

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Details

Primary Language

English

Subjects

Econometric and Statistical Methods, Regional Economy

Journal Section

Research Article

Publication Date

September 26, 2026

Submission Date

April 13, 2026

Acceptance Date

July 9, 2026

Published in Issue

Year 2026 Volume: 10 Number: 2

APA
Katterbauer, K., Yılmaz, S., Özbay, R. D., & Syed, H. (2026). The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa. Fiscaoeconomia, 10(2), 1-18. https://doi.org/10.25295/fsecon.1929269
AMA
1.Katterbauer K, Yılmaz S, Özbay RD, Syed H. The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa. FSECON. 2026;10(2):1-18. doi:10.25295/fsecon.1929269
Chicago
Katterbauer, Klemens, Sema Yılmaz, Rahmi Deniz Özbay, and Hassan Syed. 2026. “The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa”. Fiscaoeconomia 10 (2): 1-18. https://doi.org/10.25295/fsecon.1929269.
EndNote
Katterbauer K, Yılmaz S, Özbay RD, Syed H (September 1, 2026) The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa. Fiscaoeconomia 10 2 1–18.
IEEE
[1]K. Katterbauer, S. Yılmaz, R. D. Özbay, and H. Syed, “The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa”, FSECON, vol. 10, no. 2, pp. 1–18, Sept. 2026, doi: 10.25295/fsecon.1929269.
ISNAD
Katterbauer, Klemens - Yılmaz, Sema - Özbay, Rahmi Deniz - Syed, Hassan. “The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa”. Fiscaoeconomia 10/2 (September 1, 2026): 1-18. https://doi.org/10.25295/fsecon.1929269.
JAMA
1.Katterbauer K, Yılmaz S, Özbay RD, Syed H. The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa. FSECON. 2026;10:1–18.
MLA
Katterbauer, Klemens, et al. “The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa”. Fiscaoeconomia, vol. 10, no. 2, Sept. 2026, pp. 1-18, doi:10.25295/fsecon.1929269.
Vancouver
1.Klemens Katterbauer, Sema Yılmaz, Rahmi Deniz Özbay, Hassan Syed. The Intersection of Artificial Intelligence and Intellectual Property: The Impact of Data Exclusivity Policies on Pharmaceutical Production in Africa. FSECON. 2026 Sep. 1;10(2):1-18. doi:10.25295/fsecon.1929269
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