R&D Productivity and Intellectual Property Rights Protection Regimes
AbstractWe study firms' preferences towards intellectual property rights (IPR) regimes in a North-South context, using a simple duopoly model where a 'North' and a 'South' firm compete in a third market. Unlike other contributions in this field, we explicitly introduce the South's capability to undertake cost-reducing R&D, but maintain the South's inferiority in utilizing and managing its R&D. In contrast to traditional results, we show that the North may encourage lax IPR protection provided that its South rival's R&D productivity is sufficiently high, while the South may find it in its best interest to strictly enforce IPR protection if its R&D productivity is low. In this sense, our results do not support the idea of universal or uniform IPR protection regime. In addition, we find that if firms are allowed to agree on any level of information exchange when IPR protection is strictly enforced, such an exchange can always be established as long as each firm is ensured that what it gets to utilize in return is greater than a half of what it gives to its rival.
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Bibliographic InfoPaper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2009_06.
Date of creation: Mar 2009
Date of revision: Mar 2009
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Web page: http://www.lboro.ac.uk/departments/sbe/research/economics/index.html
More information through EDIRC
intellectural property rights (IPRs); cost-reducing R&D; R&D productivity; information exchange.;
Other versions of this item:
- Joanna Poyago-Theotoky & Khemarat Talerngsri Teerasuwannajak, 2009. "R&D Productivity and Intellectual Property Rights Protection Regimes," Working Paper Series 43_09, The Rimini Centre for Economic Analysis, revised Jan 2009.
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-14 (All new papers)
- NEP-COM-2009-03-14 (Industrial Competition)
- NEP-EFF-2009-03-14 (Efficiency & Productivity)
- NEP-INO-2009-03-14 (Innovation)
- NEP-IPR-2009-03-14 (Intellectual Property Rights)
- NEP-MIC-2009-03-14 (Microeconomics)
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.:
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