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Strengthening intellectual property rights: Experience from the 1986 Taiwanese patent reforms

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  • Lo, Shih-tse
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    Abstract

    Do stronger intellectual property rights spur inventive activity and foreign direct investment (FDI) in developing countries? What are the characteristics of industries where strengthening patent rights has the most favorable impact? In an attempt to answer these questions, this paper uses the 1986 Taiwanese patent reforms to examine the effects of strengthening patent rights in a developing economy. I find that the reforms encouraged R&D effort across industries. In addition, industries that were highly R&D intensive witnessed a marked increase in their patenting in the United States. The reforms also induced additional FDI.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167718710001347
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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Industrial Organization.

    Volume (Year): 29 (2011)
    Issue (Month): 5 (September)
    Pages: 524-536

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    Handle: RePEc:eee:indorg:v:29:y:2011:i:5:p:524-536

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    Web page: http://www.elsevier.com/locate/inca/505551

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    Keywords: Intellectual property rights Patents Invention;

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    1. Wesley M Cohen & Richard R Nelson & John P Walsh, 2003. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (Or Not)," Levine's Working Paper Archive 618897000000000624, David K. Levine.
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    8. Alison Butler, 1990. "The trade-related aspects of intellectual property rights: what is at stake?," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 34-46.
    9. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    10. Sokoloff, Kenneth L., 1988. "Inventive Activity in Early Industrial America: Evidence From Patent Records, 1790–1846," The Journal of Economic History, Cambridge University Press, vol. 48(04), pages 813-850, December.
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    12. repec:fth:harver:1473 is not listed on IDEAS
    13. Machlup, Fritz & Penrose, Edith, 1950. "The Patent Controversy in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 10(01), pages 1-29, May.
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