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Endogenous R&D and Intellectual Property Laws in Developed and Emerging Economies

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  • Bagchi, Aniruddha
  • Roy, Abhra

Abstract

The incentive of providing protection of intellectual property has been analyzed, both for an emerging economy as well as for a developed economy. The optimal patent length and the optimal patent breadth within a country are found to be positively related to each other for a fixed structure of laws abroad. Moreover, a country can respond to stronger patent protection abroad by weakening its patent protection under certain circumstances and by strengthening its patent protection under other circumstances. These results depend upon the curvature of the R&D production function. Finally, we investigate the impact of an increase in the willingness-to-pay in the emerging economy and find conditions under which there is an improvement in both patent length as well as patent breadth in the emerging economy.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31822.

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Date of creation: Jun 2011
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Handle: RePEc:pra:mprapa:31822

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Keywords: Patent Length; Patent Breadth; Productivity;

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  1. Arijit Mukherjee & Enrico Pennings, 2004. "Imitation, patent protection, and welfare," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 715-733, October.
  2. Suzanne Scotchmer, 2002. "The Political Economy of Intellectual Property Treaties," Industrial Organization, EconWPA 0201004, EconWPA.
  3. Zigic, Kresimir, 1998. "Intellectual property rights violations and spillovers in North-South trade," European Economic Review, Elsevier, Elsevier, vol. 42(9), pages 1779-1799, November.
  4. DeBrock, Lawrence M, 1985. "Market Structure, Innovation, and Optimal Patent Life," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 28(1), pages 223-44, April.
  5. Yong Yang, 1998. "Why Do Southern Countries Have Little Incentive to Protect Northern Intellectual Property Rights?," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 800-816, November.
  6. Denicolo, Vincenzo, 1996. "Patent Races and Optimal Patent Breadth and Length," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 44(3), pages 249-65, September.
  7. Donald J Wright, 2004. "Optimal Global Patent Design," Econometric Society 2004 Latin American Meetings, Econometric Society 35, Econometric Society.
  8. Gilbert, R. & Shapiro, C., 1988. "Optimal Patent Length And Breadth," Papers, Princeton, Woodrow Wilson School - Discussion Paper 28, Princeton, Woodrow Wilson School - Discussion Paper.
  9. Lapan, Harvey E. & Kim, Jeong Eon, 2006. "Heterogeneity of Southern Countries and Southern Intellectual Property Rights Policy," Staff General Research Papers 12549, Iowa State University, Department of Economics.
  10. Gene Grossman & Edwin L.-C. Lai, 2002. "International Protection of Intellectual Property," NBER Working Papers 8704, National Bureau of Economic Research, Inc.
  11. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 99, July.
  12. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
  13. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(3), pages 488-511, June.
  14. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, Elsevier, vol. 78(2), pages 474-493, December.
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