Negative Effects of Intellectual Property Protection: The unusual suspects?
AbstractThe negative effects of intellectual property protection (IPP) on trade volume were found in previous research findings in which market power effects dominate market expansion effects. Because both effects increase profits, IPP induces entry without ambiguity. However, using product-level entry data, negative effects on market supply are found after controlling for country-specific effects. An examination of entry mode choice (direct supply vs. licensing) reveals that while the direct supply mode is negatively related to IPP, licensing is not, implying that firms facing infringement risk or intense competition may avoid direct supply in IPP-stringent countries.
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Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 12057.
Length: 17 pages
Date of creation: Sep 2012
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-06 (All new papers)
- NEP-COM-2012-10-06 (Industrial Competition)
- NEP-INO-2012-10-06 (Innovation)
- NEP-IPR-2012-10-06 (Intellectual Property Rights)
- NEP-TID-2012-10-06 (Technology & Industrial Dynamics)
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