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Do We Need to Protect Intellectual Property Rights?

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Author Info

  • Popov, V.

    (Academy of National Economy and Government Service, Moscow, Russia)

Abstract

Strict protection of IPR can have a negative effect on economic development. Regression of economic growth on these indices produces conventional results (positive effect of stricter protection of IPR on growth) only if indices of institutional capacity (government effectiveness, control over corruption) are not included into the right hand side. If they are included, they kill the effect of IPR protection (because they are very much correlated with the IPR protection indices), so it is hardly possible to separate the effects of stricter IPR protection from the impact of the general strength of institutions. The same procedure was used to evaluate the impact of the IPR protection regime on the average share of R&D expenditure in GDP and the results were largely the same: without control for the institutional capacity, IPR protection seems to stimulate R&D, but after controlling for the institutional indices the effect disappears. There is also a strong negative effect of stricter regime of protection of IPR on the proliferation of the most crucial technology of recent decades – computers. The increase in the total number of PCs in 1995-2005, after controlling for the level of development, the size of the country and the institutional index, is negatively correlated with the IPR protection index.

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Bibliographic Info

Article provided by New Economic Association in its journal Journal of the New Economic Association.

Volume (Year): (2011)
Issue (Month): 11 ()
Pages: 107-126

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Handle: RePEc:nea:journl:y:2011:i:11:p:107-126

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Keywords: intellectual property rights; piracy; economic growth; institutions;

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References

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  1. Ryo Horii & Tatsuro Iwaisako, 2005. "Economic Growth with Imperfect Protection of Intellectual Property Rights," Discussion Papers in Economics and Business 05-23-Rev., Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Apr 2006.
  2. Gene Grossman & Edwin L.-C. Lai, 2002. "International Protection of Intellectual Property," NBER Working Papers 8704, National Bureau of Economic Research, Inc.
  3. Suzanne Scotchmer., 2001. "The Political Economy of Intellectual Property Treaties," Economics Working Papers E01-305, University of California at Berkeley.
  4. Acemoglu, Daron & Aghion, Philippe & Zilibotti, Fabrizio, 2002. "Vertical Integration and Distance to Frontier," CEPR Discussion Papers 3565, C.E.P.R. Discussion Papers.
  5. Ha-Joon Chang, 2002. "Kicking Away the Ladder: An Unofficial History of Capitalism, Especially in Britain and the United States," Challenge, M.E. Sharpe, Inc., vol. 45(5), pages 63-97, September.
  6. Ha-Joon Chang, 2001. "Intellectual Property Rights and Economic Development: Historical lessons and emerging issues," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 2(2), pages 287-309.
  7. Michele Boldrin & David K Levine, 2008. "Against Intellectual Monopoly," Levine's Bibliography 122247000000002371, UCLA Department of Economics.
  8. Furukawa, Yuichi, 2007. "The protection of intellectual property rights and endogenous growth: Is stronger always better?," Journal of Economic Dynamics and Control, Elsevier, vol. 31(11), pages 3644-3670, November.
  9. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
  10. Michele Boldrin & David Levine, 2002. "The Case Against Intellectual Property," American Economic Review, American Economic Association, vol. 92(2), pages 209-212, May.
  11. Vladimir Popov, 2010. "Do We Need to Protect Intellectual Property Rights?," Working Papers w0161, Center for Economic and Financial Research (CEFIR).
  12. Daron Acemoglu & Ufuk Akcigit, 2006. "State-Dependent Intellectual Property Rights Policy," NBER Working Papers 12775, National Bureau of Economic Research, Inc.
  13. 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.
  14. Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2011. "Innovating like China: a theory of stage-dependent intellectual property rights," MPRA Paper 30553, University Library of Munich, Germany.
  15. Polterovich, Victor & Popov, Vladimir, 2006. "Stages of Development, Economic Policies and a New World Economic Order," MPRA Paper 20055, University Library of Munich, Germany.
  16. Polterovich, Victor & Popov, Vladimir, 2005. "Appropriate Economic Policies at Different Stages of Development," MPRA Paper 20066, University Library of Munich, Germany.
  17. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
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Cited by:
  1. Vladimir Popov, 2010. "Do We Need to Protect Intellectual Property Rights?," Working Papers w0161, Center for Economic and Financial Research (CEFIR).

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