Author: Takanori ShimizuPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Foreign Direct Investment, Intellectual Property Rights, and Endogenous Imitation Rate in a North-South Trade Model
Author: Takanori ShimizuIntellectual Property Rights, Imitation, and Foreign Direct Investment
Author: Lee BranstetterPublisher:
ISBN:
Category : Intellectual property
Languages : en
Pages : 36
Book Description
This paper theoretically and empirically analyzes the effect of strengthening intellectual property rights in developing countries on the level and composition of industrial development. We develop a North-South product cycle model in which Northern innovation, Southern imitation, and FDI are all endogenous. Our model predicts that IPR reform in the South leads to increased FDI in the North, as Northern firms shift production to Southern affiliates. This FDI accelerates Southern industrial development. The South's share of global manufacturing and the pace at which production of recently invented goods shifts to the South both increase. Additionally, the model also predicts that as production shifts to the South, Northern resources will be reallocated to R&D, driving an increase in the global rate of innovation. We test the model's predictions by analyzing responses of U.S.-based multinationals and domestic industrial production to IPR reforms in the 1980s and 1990s. First, we find that MNCs expand the scale of their activities in reforming countries after IPR reform. MNCs that make extensive use of intellectual property disproportionately increase their use of inputs. There is an overall expansion of industrial activity after IPR reform, and highly disaggregated trade data indicate an increase in the number of initial export episodes in response to reform. These results suggest that the expansion of multinational activity more than offsets any decline in the imitative activity of indigenous firms.
Innovation, Imitation, and Intellectual Property Rights
Author: Elhanan HelpmanPublisher:
ISBN:
Category : Diffusion of innovations
Languages : en
Pages : 72
Book Description
The debate between the North and the South about the enforcement of intellectual property rights in the South is examined within a dynamic general equilibrium framework in which the North innovates new products and the South imitates them. A welfare evaluation of a policy of tighter intellectual property rights is provided by decomposing a region's welfare change into four components: terms of trade, production composition, available product choice and intertemporal allocation of consumption spending. The paper provides a theoretical evaluation of each one of these components and their relative size. The analysis proceeds in stages. It begins with an exogenous rate of innovation in order to focus on the first two components. The last two components are added by endogenizing the rate of innovation. Finally, the paper considers the role of foreign direct investment.
Intellectual Property Rights, Foreign Direct Investment, and Industrial Development
Author: Lee BranstetterPublisher:
ISBN:
Category :
Languages : en
Pages : 41
Book Description
This paper develops a North-South product model in which Southern imitation and the North-South flow of foreign direct investment (FDI) are endogenously determined. In the model, a strengthening of IPR protection in the South reduces the rate of imitation, which, in turn, increases the flow of FDI. The increase in FDI more than offsets the decline in production undertaken by Southern imitators, so that the South's share of goods produced by the global economy increases. Furthermore, real wages of Southern workers increase even though prices of goods produced by multinationals exceed those of Southern imitators. The preceding results hold when Northern innovation is endogenously determined; in addition, the rate of innovation increases with a strengthening of Southern IPR protection.
Intellectual property rights, foreign direct investment and industrial development
Author: Lee BranstetterPublisher:
ISBN:
Category : Industrialization
Languages : en
Pages : 39
Book Description
This paper develops a North-South product model in which Southern imitation and the North-South flow of foreign direct investment (FDI) are endogenously determined. In the model, a strengthening of IPR protection in the South reduces the rate of imitation, which, in turn, increases the flow of FDI. The increase in FDI more than offsets the decline in production undertaken by Southern imitators, so that the South's share of goods produced by the global economy increases. Furthermore, real wages of Southern workers increase even though prices of goods produced by multinationals exceed those of Southern imitators. The preceding results hold when Northern innovation is endogenously determined; in addition, the rate of innovation increases with a strengthening of Southern IPR protection.
Intellectual Property, Growth and Trade
Author: Keith E. MaskusPublisher: Emerald Group Publishing
ISBN: 184950539X
Category : Law
Languages : en
Pages : 560
Book Description
Offers comprehensive and analytical literature surveys of the central questions regarding the linkages between intellectual property protection, international trade and investment, and economic growth. This book covers such questions as policy coordination in IPR, dispute resolution, and markets for technology and technology transfer.
Intellectual Property Rights and North-South Trade
Author: Quan DongPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper examines whether a Northern firm prefers to export or to engage in FDI to serve the South. If the firm engages in FDI, its technology is imitated, and a Southern firm enters the market that may sell in both markets. The Northern firm may invest to prevent product piracy in the North. The two markets may have different sizes. We find that when the cost of preventing product piracy in the North is great enough: (i) If the Southern market is large enough the Northern firm engages in FDI, allowing piracy in its home market, and the South obtains the greater welfare; (ii) If the Southern market is small enough the Northern firm exports and the government of the South imposes a strong Intellectual Property Rights protection, attracting the Northern firm and improving the welfare of both countries.
Intellectual Property Rights
Author: Nikolaus ThummPublisher: Springer Science & Business Media
ISBN: 3662121018
Category : Business & Economics
Languages : en
Pages : 169
Book Description
This book is the result of the PhD project I started four years ago at Europa-Kolleg Hamburg. I had the great opportunity to work on it for one year at the European University Institute in Florence and to finalise the oeuvre during my stay with the European Commission's Institute for Prospective Technological Studies in Seville. The subject matter of the book is intellectual property rights, patents in particular, and their process of harmonisation in Europe. At the beginning of the work, the intention was not to focus immediately on one narrow field in the huge realm of intellectual property rights but rather to open my mind in order to capture a broad variety of new ideas and concepts in the book. The work at three different institutes in three different European countries over the period of four years naturally exposed the work to diverging ideas and the exchange of views with many people. This is one reason for the wide spread of topics ordered around the given leitmotif, such as epistemological foundations, political background information,. the protection of biotechnological inventions and the building up process of intellectual property right systems in the countries of Central and Eastern Europe. In chapter two I take up Polanyi's differentiation of codifiable and tacit knowledge. Applying these concepts to my own work I realise that this book is only the visible and codified part of knowledge I was able to capture.
Intellectual Property Rights, Foreign Direct Investment and Innovation
Author: Amy Jocelyn GlassPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper develops a product cycle model with endogenous and costly innovation, imitation, and foreign direct investment (FDI) to address the concerns of developing nations that stronger intellectual property rights (IPR) protection would force them to waste scarce resources 'reinventing the wheel.' With stronger IPR protection, multinationals become safer from imitation, but no safer than Northern firms. Imitation becomes a more predominant channel of international technology transfer relative to FDI. Stronger IPR protection displaces FDI due to aggravated resource scarcity in the South. Reduced FDI transmits resource scarcity in the South back to the North and consequently contracts innovation.
Firm Heterogeneity and Weak Intellectual Property Rights
Author: Stanley WattPublisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 46
Book Description
In weak intellectual property rights (IPR) environments, the imitation of proprietary technology by domestic firms has become a deterrent for foreign investment. Different multinationals may view this deterrent differently. This paper develops a model where firms with more technology are less likely to invest in weak IPR environments. If imitation is costly, the model predicts that multinationals with the lowest level and highest level of technology will invest in weak IPR environments, and multinationals with a moderate level of technology will invest only in strong IPR environments. Empirical analysis with firm level data is consistent with this non-monotonicity result.