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Innovation versus Imitation: Intellectual Property Rights in a North-South Framework

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  • Michael Wycherley

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    (Department of Economics, Trinity College Dublin, Ireland)

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    Abstract

    This paper examines differences in the optimal strength of intellectual property rights protection in a North-South endogenous growth model where it is possible for the South to engage in imitation, innovation or both. The possibility of Southern innovation implies sharp breaks in optimal policy at different stages of development in the South depending on whether it is optimal to induce innovation in the South. These sharp breaks imply strong policy conflict between the North and the South at intermediate levels of development but policy agreement elsewhere.

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    File URL: http://www.tcd.ie/Economics/TEP/2011/TEP2011.pdf
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    Bibliographic Info

    Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number tep2011.

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    Length: 26 pages
    Date of creation: Dec 2011
    Date of revision:
    Handle: RePEc:tcd:tcduee:tep2011

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    Postal: Trinity College, Dublin 2
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    Web page: http://www.tcd.ie/Economics/
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    Related research

    Keywords: Intellectual Property Rights; Innovation; Economic Development;

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    1. Nancy Gallini & Suzanne Scotchmer, 2003. "Intellectual Property: When is it the Best Incentive System?," Levine's Working Paper Archive 618897000000000532, David K. Levine.
    2. Acemoglu, Daron & Gancia, Gino & Zilibotti, Fabrizio, 2012. "Competing engines of growth: Innovation and standardization," Journal of Economic Theory, Elsevier, vol. 147(2), pages 570-601.e3.
    3. Puga, Diego & Trefler, Daniel, 2010. "Wake up and smell the ginseng: International trade and the rise of incremental innovation in low-wage countries," Journal of Development Economics, Elsevier, vol. 91(1), pages 64-76, January.
    4. Grossman, Gene M & Helpman, Elhanan, 1991. "Endogenous Product Cycles," Economic Journal, Royal Economic Society, vol. 101(408), pages 1214-29, September.
    5. Currie, David, et al, 1999. "Phases of Imitation and Innovation in a North-South Endogenous Growth Model," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 60-88, January.
    6. Arnold, Lutz G., 2003. "Growth in stages," Structural Change and Economic Dynamics, Elsevier, vol. 14(1), pages 55-74, March.
    7. van Elkan, Rachel, 1996. "Catching up and slowing down: Learning and growth patterns in an open economy," Journal of International Economics, Elsevier, vol. 41(1-2), pages 95-111, August.
    8. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 557-86, May.
    9. Arvind Subramanian & Raghuram Rajan & Ioannis Tokatlidis & Kalpana Kochhar & Utsav Kumar, 2006. "India's Pattern of Development: What Happened, What Follows?," IMF Working Papers 06/22, International Monetary Fund.
    10. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-80, November.
    11. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
    12. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-66, April.
    13. Mansfield, Edwin & Schwartz, Mark & Wagner, Samuel, 1981. "Imitation Costs and Patents: An Empirical Study," Economic Journal, Royal Economic Society, vol. 91(364), pages 907-18, December.
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