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Intellectual property rights, human capital and the incidence of R&D expenditures

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  • Bravo-Ortega, Claudio
  • Lederman, Daniel

Abstract

Numerous studies predict that developing countries with low human capital may not benefit from the strengthening of intellectual property rights. The authors extend an influential theoretical framework to highlight the role of intellectual property rights in the process of innovation and structural change. The resulting theory is consistent with a stylized fact that appears in the data, namely that countries with poor intellectual-property protection may accumulate human capital without a corresponding increase in research and development investment as a share of national income. The model predicts that without minimum intellectual-property protection, additional education may result in more imitation rather than innovation. The preponderance of the econometric evidence presented in this paper suggests that interactions between human capital and intellectual property rights determine global patterns of research and development effort, and intellectual property rights tend to raise the effect of education on the incidence of research and development.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5217.

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Date of creation: 01 Feb 2010
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Handle: RePEc:wbk:wbrwps:5217

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Keywords: Economic Theory&Research; E-Business; Debt Markets; Labor Policies; Knowledge for Development;

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Cited by:
  1. Arusha Cooray & Antonio Paradiso, 2012. "The level and growth effects in empirical growth models for the Nordic countries: A knowledge economy approach," CAMA Working Papers 2012-36, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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