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Dynamic Analysis of Innovation and Licensing: The Effects of Intellectual Property Rights Protection

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  • Hitoshi Tanaka

    ()
    (Graduate School of Economics, Osaka University)

  • Tatsuro Iwaisako

    ()
    (Faculty of Economics, Ritsumeikan University)

  • Koichi Futagami

    ()
    (Graduate School of Economics, Osaka University)

Abstract

Licensing is one of the major sources of international technology transfer to developing countries. This paper clarifies how strengthening intellectual property rights (IPRs) affect innovation and licensing by making use of a quality-ladder type of dynamic general equilibrium model. We explore not only the long-run effects but also the short-run effects of the policy by fully examining the dynamic characteristics of the model. The model shows that stronger IPRs promote innovation and technology transfers in both the long run and the short run if IPR protection greatly reduces the negotiation cost of licensing.

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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 06-06.

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Length: 36 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:osk:wpaper:0606

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: Licensing; Innovation; Intellectual property rights; North-South; Technology transfer;

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  8. Yang, Guifang & Maskus, Keith E., 2001. "Intellectual property rights, licensing, and innovation in an endogenous product-cycle model," Journal of International Economics, Elsevier, vol. 53(1), pages 169-187, February.
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  10. Jocelyn Glass, Amy & Saggi, Kamal, 2002. "Licensing versus direct investment: implications for economic growth," Journal of International Economics, Elsevier, vol. 56(1), pages 131-153, January.
  11. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
  12. Kwan, Yum K. & Lai, Edwin L. -C., 2003. "Intellectual property rights protection and endogenous economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 853-873, March.
  13. Li, Chol-Won, 2001. "On the Policy Implications of Endogenous Technological Progress," Economic Journal, Royal Economic Society, vol. 111(471), pages C164-79, May.
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