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Should Developing Countries Strengthen their Intellectual Property Rights?

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  • Angeles Luis

    (The University of Manchester)

Abstract

This paper evaluates the welfare consequences of implementing intellectual property rights in developing countries. The protection of intellectual property in poor countries promises to increase world innovation, but this would not come without costs. Higher prices for consumers in that part of the world are the negative side of this policy.We present a general equilibrium model with two regions (the North and the South) to compare these two effects. Our main contribution is to show that the results will depend on the difference in economic development (represented by labor productivity) between the two regions. The South might suffer a net welfare loss if its productivity level is very low with respect to the North.

Suggested Citation

  • Angeles Luis, 2005. "Should Developing Countries Strengthen their Intellectual Property Rights?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-25, November.
    • Handle: RePEc:bpj:bejmac:v:topics.5:y:2005:i:1:n:23
    DOI: 10.2202/1534-5998.1327
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    Cited by:

    1. Luis Angeles, 2011. "Institutions, Property Rights, and Economic Development in Historical Perspective," Kyklos, Wiley Blackwell, vol. 64(2), pages 157-177, May.
    2. Bronwyn H. Hall, 2020. "Patents, Innovation, and Development," NBER Working Papers 27203, National Bureau of Economic Research, Inc.
    3. Bronwyn H. Hall, 2014. "Does patent protection help or hinder technology transfer?," Chapters, in: Sanghoon Ahn & Bronwyn H. Hall & Keun Lee (ed.), Intellectual Property for Economic Development, chapter 2, pages 11-32, Edward Elgar Publishing.
    4. Walter Park, 2012. "North–South models of intellectual property rights: an empirical critique," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 151-180, April.

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