R&D Productivity and Intellectual Property Rights Protection Regimes
AbstractWe study fi rms' 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 fi eld, 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 fi nd 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 fi rms 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 fi rm is ensured that what it gets to utilize in return is sufficiently more than what it gives to its rival.
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Bibliographic InfoPaper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 43_09.
Date of creation: Jan 2009
Date of revision: Jan 2009
intellectual property rights (IPR); 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," Discussion Paper Series 2009_06, Department of Economics, Loughborough University, revised Mar 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
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