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Innovating like China: a theory of stage-dependent intellectual property rights

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  • Chu, Angus C.
  • Cozzi, Guido
  • Galli, Silvia

Abstract

Inspired by the Chinese experience, we develop a Schumpeterian growth model of distance to frontier in which economic growth in the developing country is driven by domestic innovation as well as imitation and transfer of foreign technologies through foreign direct investment. We show that optimal IPR protection is stage-dependent. At an early stage of development, the country implements weak IPR protection to facilitate imitation. At a later stage of development, the country implements strong IPR protection to encourage domestic innovation. Finally, we provide empirical evidence that supports this theoretical finding.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30553.

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Date of creation: Apr 2011
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Handle: RePEc:pra:mprapa:30553

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Keywords: economic growth; stage-dependent intellectual property rights;

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Citations

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Cited by:
  1. Tatsuro Iwaisako, 2012. "Welfare effects of patent protection and productive public services: why do developing countries prefer weaker patent protection?," Discussion Papers in Economics and Business 12-19, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  2. Popov, V., 2011. "Do We Need to Protect Intellectual Property Rights?," Journal of the New Economic Association, New Economic Association, issue 11, pages 107-126.
  3. Dai, Darong & Shen, Kunrong, 2011. "A New Exploration of Optimal IPR Protection and International Policy Cooperation," MPRA Paper 40039, University Library of Munich, Germany.

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