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Intellectual Property Rights and Economic Growth

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Author Info
Rod Falvey
Neil Foster
David Greenaway

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Abstract

Interest in links between protection of intellectual property and growth has been revived by developments in new growth theory and by the WTO's TRIPS Agreement. The relationship between the strength of a country's intellectual property rights (IPRs) regime and rate of growth is ambiguous from a theoretical standpoint, reflecting the variety of channels through which technology can be acquired and their differing importance at different stages of development. We investigate the impact of IPR protection on economic growth in a panel of 79 countries using threshold regression analysis. We show that whilst the effect of IPR protection on growth depends upon the level of development, it is positively and significantly related to growth for low- and high-income countries, but not for middle-income countries. This suggests that, although IPR protection encourages innovation in high-income countries, and technology flows to low-income countries, middle-income countries may have offsetting losses from reduced scope for imitation. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2006.00343.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 10 (2006)
Issue (Month): 4 (November)
Pages: 700-719
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Handle: RePEc:bla:rdevec:v:10:y:2006:i:4:p:700-719

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  1. Chu, Angus C., 2009. "Macroeconomic Effects of Intellectual Property Rights: A Survey," MPRA Paper 17342, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  2. Pervez Zamurrad Janjua & Ghulam Samad, 2007. "Intellectual Property Rights and Economic Growth: The Case of Middle Income Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 711-722. [Downloadable!]
  3. Ang, James, 2009. "Financial Reforms, Patent Protection and Knowledge Accumulation in India," MPRA Paper 17656, University Library of Munich, Germany. [Downloadable!]
  4. Matthew Littleton, 2008. "The TRIPS Agreement and Transfer of Climate-Change-Related Technologies to Developing Countries," Working Papers 71, United Nations, Department of Economics and Social Affairs. [Downloadable!]
  5. Intan Hamdan-Livramento, 2009. "How compliant are developing countries with their TRIPS obligations?," CEMI Working Papers cemi-workingpaper-2009-00, Ecole Polytechnique Fédérale de Lausanne, Collège du Management de la Technologie, Management of Technology and Entrepreneurship Institute, Chaire en Economie et Management de l'Innovation. [Downloadable!]
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