This paper examines the effect of foreign intellectual property right (IPR) systems and the policies that comprise them on U.S. exports of biotechnology related agricultural input industries. Policy components include the extent of patent coverage across industry sectors, enforcement mechanisms, provisions for loss of patent protection, memberships to other international patent agreements, and duration of patent protection. Extending the empirical and theoretical work of Smith (2002), this paper uses a gravity model to analyze how IPRs affect the market power and market expansion effects of exports to countries with differing abilities to imitate technology. The findings suggest that strengthening global IPRs grant a market power effect to U.S. exporters; strong IPRs reduce U.S. exports by awarding a temporary monopoly over the protected good. However, the analysis of the individual policy components of an IPR system reveal which components inhibit trade through market power effects and which components counterbalance it through market expansion effects, increasing the flow of trade and access to biotechnology related agricultural inputs.
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number
22222.
Length: Date of creation: 2003 Date of revision: Handle: RePEc:ags:aaea03:22222
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Shoemaker, Robbin & Harwood, Joy & Day-Rubenstein, Kelly & Dunahay, Terry & Heisey, Paul & Hoffman, Linwood & Klotz-Ingram, Cassandra & Lin, William & Mitchell, Lorraine & McBride, William & Fernandez, 2001.
"Economic Issues In Agricultural Biotechnology,"
Agricultural Information Bulletins
33735, United States Department of Agriculture, Economic Research Service.
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