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Trade-related intellectual property rights: industry variation and technology diffusion

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  • Olena Ivus

Abstract

This paper assesses how a strengthening of intellectual property rights (IPRs) affects international technology diffusion by altering the volume of high-tech exports into developing countries. A simple North-South general equilibrium model in which industries differ in their imitation rates is developed. Stronger IPRs encourage Northern firms in a wider range of industries to start exporting. Exports in industries with the highest risk of imitation rise, while exports in other industries may fall. More technology diffuses to the South because new high-tech products are introduced in the Southern market. This works against the reduction in technology diffusion caused by limited imitation.

Suggested Citation

  • Olena Ivus, 2011. "Trade-related intellectual property rights: industry variation and technology diffusion," Canadian Journal of Economics, Canadian Economics Association, vol. 44(1), pages 201-226, February.
    • Handle: RePEc:cje:issued:v:44:y:2011:i:1:p:201-226
    DOI: 10.1111/j.1540-5982.2010.01629.x
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    Cited by:

    1. Iwaisako, Tatsuro & Tanaka, Hitoshi, 2017. "Product cycles and growth cycles," Journal of International Economics, Elsevier, vol. 105(C), pages 22-40.
    2. Alireza Naghavi & Julia Spies & Farid Toubal, 2011. "International Sourcing, Product Complexity and Intellectual Property Rights," Center for Economic Research (RECent) 067, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    3. Azevedo, Mónica L. & Afonso, Óscar & Silva, Sandra T., 2014. "Endogenous growth and intellectual property rights: A north–south modeling proposal," Economic Modelling, Elsevier, vol. 38(C), pages 112-120.
    4. Toshihiro ICHIDA, 2013. "Imitation versus Innovation Costs: Patent policies under common patent length," Discussion papers 13054, Research Institute of Economy, Trade and Industry (RIETI).
    5. Lin, Jenny X. & Lincoln, William F., 2017. "Pirate's treasure," Journal of International Economics, Elsevier, vol. 109(C), pages 235-245.
    6. Kamal Saggi, 2016. "Trade, Intellectual Property Rights, and the World Trade Organization," Vanderbilt University Department of Economics Working Papers 16-00014, Vanderbilt University Department of Economics.
    7. Hu, Xiaotian & Yin, Xiaopeng, 2022. "Do stronger intellectual property rights protections raise productivity within the context of trade liberalization? Evidence from China," Economic Modelling, Elsevier, vol. 110(C).
    8. Jenny X. Lin & William Lincoln, 2017. "Pirate’s Treasure," Working Papers 17-51, Center for Economic Studies, U.S. Census Bureau.
    9. Afonso Óscar, 2019. "The role of IPRs on prices, wages and growth in a two country directed technical change model," The B.E. Journal of Macroeconomics, De Gruyter, vol. 19(1), pages 1-27, January.
    10. Kamal Saggi, 2013. "Market Power in the Global Economy: The Exhaustion and Protection of Intellectual Property," Economic Journal, Royal Economic Society, vol. 123(567), pages 131-161, March.
    11. Alireza Naghavi & Julia Spies & Farid Toubal, 2015. "Intellectual property rights, product complexity and the organization of multinational firms," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(3), pages 881-902, August.
    12. Oscar Afonso & Manuela Magalhães, 2021. "The role of intellectual property rights in a directed technical change model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 2142-2176, April.
    13. Olena Ivus & Walter G Park & Kamal Saggi, 2023. "Patent protection and the composition of multinational activity: Evidence from US multinational firms," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 14, pages 317-345, World Scientific Publishing Co. Pte. Ltd..
    14. Doanh, Nguyen Khanh & Gam, Nguyen Thi & Heo, Yoon, 2022. "The impact of intellectual property rights protection on trade: The role of a “third country” in market power and market expansion effects," Economic Systems, Elsevier, vol. 46(1).
    15. Naoto Jinji & Yukiko Sawada & Xingyuan Zhang & Shoji Haruna, 2024. "Gravity for cross‐border licensing and the impact of deep trade agreements: Theory and evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(3), pages 836-869, August.
    16. Metaxas, Theodore & Kechagia, Polyxeni, 2012. "F.D.I. through the imitation procedure The case of China: A Note," MPRA Paper 40886, University Library of Munich, Germany.
    17. Klein, Michael A., 2023. "Trade secret protection, multinational firms and international trade," International Economics, Elsevier, vol. 173(C), pages 325-342.
    18. Olena Ivus & Walter Park & Kamal Saggi, 2016. "Intellectual Property Protection And The Industrial Composition Of Multinational Activity," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1068-1085, April.
    19. Olena Ivus & Walter Park & Kamal Saggi, 2015. "Patent Protection and the Industrial Composition of Multinational Activity: Evidence from U.S. Multinational Firms," Vanderbilt University Department of Economics Working Papers 15-00014, Vanderbilt University Department of Economics.
    20. Hu, Xiaotian & Yin, Xiaopeng, 2025. "Understanding the product structure of exporters: The role of intellectual property protection in export origins," Journal of Asian Economics, Elsevier, vol. 100(C).

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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