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Intellectual property rights protection in the presence of exhaustible resources

Author

Listed:
  • Takeo Hori

    (Tokyo Institute of Technology)

  • Hiroaki Yamagami

    (Seikei University
    Université Paris 1 Panthéon-Sorbonne)

Abstract

We study the role of intellectual property rights (IPR) protection in the presence of exhaustible resources. Because resource scarcity is a constraint on growth, one may conjecture that IPR protection should be strong to stimulate research and development activities and to sustain perpetual growth. However, we show that IPR protection does not always need to be strengthened as the economy becomes more resource intensive. Furthermore, we derive the welfare-maximizing strength of IPR protection, and show that it increases in the presence of exhaustible resources. Therefore, our results suggest that ignoring exhaustible resources may result in inefficient innovation policies.

Suggested Citation

  • Takeo Hori & Hiroaki Yamagami, 2018. "Intellectual property rights protection in the presence of exhaustible resources," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(4), pages 759-784, October.
    • Handle: RePEc:spr:envpol:v:20:y:2018:i:4:d:10.1007_s10018-018-0214-0
    DOI: 10.1007/s10018-018-0214-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Endogenous growth; Exhaustible resource; Innovation; Intellectual property rights protection; Patent breadth;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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