Strategic Intellectual Property Protection Policy and North-South Technology Transfer

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Strategic Intellectual Property Protection Policy and North-South Technology Transfer

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Alireza Naghavi (University College Dublin)

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Alireza Naghavi

Abstract

I analyze the welfare implications of protecting intellectual property rights (IPR) in developing countries through its impact on innovation, market structure, and technology transfer. FDI, tariffs, and joint ventures (JV) are introduced to the strategic IPR literature. In a North-South trade environment, the South sets the IPR policy strategically by anticipating the Northern firm’s R&D expenditure and multinationalization decision. A stringent IPR policy is always chosen in order to motivate technology transfer through FDI, which in turn improves welfare. JVs bring in more profits for the Southern firm, but FDI is the optimal form of transfer in terms of welfare.

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Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 200313.

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Length: 35 pages
Date of creation: 19 Apr 2003
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Handle: RePEc:ucn:wpaper:200313

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Find related papers by JEL classification:
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

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