Intellectual Property Protection and Technology Licensing: The Case of Developing Countries
AbstractThis paper studies the influence of stronger patent protection on technology licensing. Using data for the post–Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) period and focusing on developing countries, I correct for any endogeneity biases that may bedevil estimation. Employing a more inclusive index of patent protection than hitherto, which better accounts for the enforcement and implementation environment, I find that stronger protection is associated with increased royalty and license fee payments, which implies greater technology transfer to developing countries. The significance of the protection variable is driven by the subindex of patent coverage, which makes eminent sense in view of the increase in the coverage of patentable matter by developing countries after TRIPS. The economic significance of the protection variable is also substantial, with ceteris paribus changes in this variable accounting for technology inflows of U.S.$2.5–$3.2 billion (base year 2000) in the post-TRIPS sample period.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal The Journal of Law and Economics.
Volume (Year): 55 (2012)
Issue (Month): 3 ()
Pages: 539 - 564
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JLE/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ming Liu & Sumner la Croix, 2013. "A Cross-Country Index of Intellectual Property Rights in Pharmaceutical Innovations," Working Papers 201313, University of Hawaii at Manoa, Department of Economics.
- Christine Greenhalgh, 2013. "Science, Technology, Innovation and IP in India - New Directions and Prospects," Economics Series Working Papers 660, University of Oxford, Department of Economics.
- Sunil Kanwar, 2013. "Innovation, Efficiency, Productivity And Intellectual Property Rights -- Evidence From A Bric Economy," Working papers 230, Centre for Development Economics, Delhi School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.