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Intellectual Property Rights and Innovation in Developing Countries: Evidence from Panel Data

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Author Info
Leger, Andreanne

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Abstract

The determinants of innovation and the role of intellectual property rights in different countries are not well understood. This paper estimates the determinants of innovation using a new panel dataset. It compares different panel estimation methods appropriate for finite size samples. Past R&D investments have a positive and significant impact on current innovation, demand-pull factors are also important in all country groups, and the structure of the economy has a negative (positive) impact in developing (industrialized) countries. Intellectual property protection is only significant for developing countries. The least-square dummy variable corrected estimator is found to be the most appropriate for small, unbalanced datasets. We discuss econometric issues and the policy implication of these results.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21407.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21407

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Related research
Keywords: Research and Development/Tech Change/Emerging Technologies;

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References listed on IDEAS
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  1. Mark E Schaffer, 2005. "XTIVREG2: Stata module to perform extended IV/2SLS, GMM and AC/HAC, LIML and k-class regression for panel data models," Statistical Software Components S456501, Boston College Department of Economics, revised 16 Oct 2008. [Downloadable!]
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-80, November. [Downloadable!] (restricted)
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  4. Diwan, Ishac & Rodrik, Dani, 1991. "Patents, appropriate technology, and North-South trade," Journal of International Economics, Elsevier, vol. 30(1-2), pages 27-47, February. [Downloadable!] (restricted)
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  5. Zigic, Kresimir, 1998. "Intellectual property rights violations and spillovers in North-South trade," European Economic Review, Elsevier, vol. 42(9), pages 1779-1799, November. [Downloadable!] (restricted)
  6. Deardorff, Alan V, 1992. "Welfare Effects of Global Patent Protection," Economica, London School of Economics and Political Science, vol. 59(233), pages 35-51, February. [Downloadable!] (restricted)
  7. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July. [Downloadable!] (restricted)
  8. Giovanni S. F. Bruno, 2005. "Estimation and inference in dynamic unbalanced panel-data models with a small number of individuals," Stata Journal, StataCorp LP, vol. 5(4), pages 473-500, December. [Downloadable!]
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  9. Jorge Crespo & Carmela Martín & Francisco J. Velázquez, 2004. "International technology spillovers from trade: the importance of the technological gap," Investigaciones Economicas, Fundación SEPI, vol. 28(3), pages 515-533, September. [Downloadable!]
  10. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January. [Downloadable!] (restricted)
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  11. Frank Windmeijer, 2000. "A finite sample correction for the variance of linear two-step GMM estimators," IFS Working Papers W00/19, Institute for Fiscal Studies. [Downloadable!]
  12. David Roodman, 2003. "XTABOND2: Stata module to extend xtabond dynamic panel data estimator," Statistical Software Components S435901, Boston College Department of Economics, revised 19 Sep 2009. [Downloadable!]
  13. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October. [Downloadable!] (restricted)
  14. William F. Maloney & Daniel Lederman, 2004. "R&D and Development," Econometric Society 2004 Latin American Meetings 216, Econometric Society.
  15. Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 87(3), pages 361-366, June. [Downloadable!] (restricted)
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  16. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
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  17. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February. [Downloadable!] (restricted)
  18. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-43, May. [Downloadable!] (restricted)
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