Author: Christian LorenczikPublisher:
ISBN:
Category :
Languages : en
Pages : 111
Book Description
Three Essays on the Role of Intellectual Property Rights in Innovation, Foreign Direct Investments and Imitation
Author: Christian LorenczikInnovation, 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, Imitation, and Foreign Direct Investment
Author: Lee BranstetterPublisher:
ISBN:
Category :
Languages : en
Pages : 44
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 Ramp;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.
Intellectual Property Rights, Licencing, and Innovation
Author: Guifang YangPublisher: World Bank Publications
ISBN:
Category : Development
Languages : en
Pages : 40
Book Description
There is considerable debate in economics literature on whether a decision by developing countries to strengthen their protection of intellectual property rights (IPRs) will increase or reduce their access to modern technologies invented by industrial countries. This access can be achieved through technology transfer of various kinds, including foreign direct investment and licensing. Licensing is the focus of this paper. To the extent that inventing firms choose to act more monopolistically and offer fewer technologies on the market, stronger IPRs could reduce international technology flows. However, to the extent that IPRs raise the returns to innovation and licensing, these flows would expand. In theory, the outcome depends on how IPRs affect several variables--the costs of, and returns to, international licensing; the wage advantage of workers in poor countries; the innovation process in industrial countries; and the amount of labor available for innovation and production. Yang and Maskus develop a theoretical model in which firms in the North (industrial countries) innovate products of higher quality levels and decide whether to produce in the North or transfer production rights to the South (developing countries) through licensing. Different quality levels of each product are sold in equilibrium because of differences in consumers' willingness-to-pay for quality improvements. Contracting problems exist because the inventors in the North must indicate to licensees in the South whether their product is of higher or lower quality and also prevent the licensees from copying the technology. So, constraints in the model ensure that the equilibrium flow of licensing higher-quality goods meets these objectives. When the South strengthens its patent rights, copying by licensees is made costlier but the returns to licensing are increased. This change affects the dynamic decisions regarding innovation and technology transfer, which could rise or fall depending on market parameters, including the labor available for research and production. Results from the model show that the net effects depend on the balance between profits made by the Northern licensor and lower labor costs in the South. If the size of the labor force used in Northern innovation compared with that used in producing goods in both the North and South is sufficiently small (a condition that accords with reality), stronger IPRs in the South would lead to more licensing and innovation. This change would also increase the Southern wage relative to the Northern wage. So, in this model a decision by developing countries to increase their patent rights would expand global innovation and increase technology transfer. This result is consistent with recent empirical evidence. It should be noted that while the results suggest that international agreements to strengthen IPRs should expand global innovation and technology transfer through licensing, the model cannot be used for welfare analysis. Thus, while the developing countries enjoy more inward licensing, the cost per license could be higher, and prices could also rise, with an unclear overall effect on economic well-being. This paper--a product of Trade, Development Research Group--is part of a larger effort in the group to assess the impact of intellectual property rights on economic development.
Intellectual Property Rights and Foreign Direct Investment
Author: Peter NunnenkampIntellectual 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.
Innovation and IPRs in China and India
Author: Kung-Chung LiuPublisher: Springer
ISBN: 9811004064
Category : Law
Languages : en
Pages : 230
Book Description
This book examines the two most populous nations on earth – India and China – in an effort to demystify the interaction between intellectual property rights (IPR) regimes, innovation and economic growth by critically looking at the economic and legal realities. In addition, it analyzes the question of how innovation can best be transformed into IPR, and how IPR can best be exploited to encourage innovation. Comparing and contrasting these two giant nations can be highly beneficial as China and India were the two fastest-growing economies in the last three decades, and together their populations make up one third of the world’s total population; as such, exploring how to sustain their growth via innovation and commercialization of IPR could have a tremendous positive impact on global well-being. While a study of these two mega countries with such diverse dimensions and magnitudes can never be truly comprehensive, this joint effort by scholars from law, business management and economics disciplines that pursues an empirical approach makes a valuable contribution. Divided into three parts, the first offers an in-depth doctrinal and empirical analysis. The second part exclusively focuses on India, while the last is dedicated to China.
Intellectual Property Rights and Foreign Direct Investment
Author: United Nations. Transnational Corporations and Management DivisionPublisher: New York : United Nations
ISBN:
Category : Law
Languages : en
Pages : 128
Book Description
Intellectual Property Rights as Foreign Direct Investments
Author: Lukas VanhonnaekerPublisher: Edward Elgar Publishing
ISBN: 1784712515
Category : Law
Languages : en
Pages : 310
Book Description
What is the level of convergence between the international investment law framework and the international legal regime regulating intellectual property rights? This discerning book examines the interface between intellectual property and foreign direct
The Economics of Intellectual Property Rights in China
Author: Johannes LiegsalzPublisher: Springer Science & Business Media
ISBN: 3834988650
Category : Business & Economics
Languages : en
Pages : 179
Book Description
The importance of intellectual property rights in industrialized countries, as well as in emerging economies, has been increasing considerably over the past two decades. An important event in the course of this development was the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Especially regarding the economic development of the People's Republic of China (PRC), intellectual property rights have attracted the attention of scientists and decision-makers in business and public policy. While China meets the basic legal requirements of a well-developed system for the application and examination of intellectual property rights, the enforcement of these rights still proves to be a major issue. Academic research regarding China's IPR system is still sparse. Moreover, there are considerable gaps in the literature. In previous academic studies, the examination process at the Chinese State Intellectual Property Office (SIPO) has not been researched thoroughly. Moreover, the fundamental relationship between international trade flows, foreign direct investment and the design of the patent system in the People's Republic is in need of more detailed analysis. In his dissertation, Johannes Liegsalz tackles three specific questions immediately related to this nexus. He applies multivariate econometric methods to different data sets which were assembled specifically for the purpose of this thesis. The first chapter of the thesis analyzes the duration of the examination process for patent applications at the SIPO.