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Intellectual property rights, diasporas, and domestic innovation

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  • Naghavi, Alireza
  • Strozzi, Chiara

Abstract

This paper studies the interaction between international migration and intellectual property rights (IPR) in determining innovation performance of developing countries. Although emigration may directly cause brain drain, it generates a flow of knowledge acquired by emigrants abroad back to their home countries, which could be exploited under sound IPR institutions. IPRs can thus stimulate domestic innovation by creating the right environment to absorb potential gains from international migration. Using a panel dataset of emerging and developing countries, we show that emigration has a favorable effect on strengthening the link between IPR protection and innovation by making a new source of knowledge available to domestic innovators. We test our results through instrumental variable methods using information on geography, cultural distance and institutions.

Suggested Citation

  • Naghavi, Alireza & Strozzi, Chiara, 2015. "Intellectual property rights, diasporas, and domestic innovation," Journal of International Economics, Elsevier, vol. 96(1), pages 150-161.
  • Handle: RePEc:eee:inecon:v:96:y:2015:i:1:p:150-161 DOI: 10.1016/j.jinteco.2015.01.007
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    Cited by:

    1. Gil S. Epstein & Odelia Heizler (Cohen), 2016. "The formation of networks in the diaspora," International Journal of Manpower, Emerald Group Publishing, vol. 37(7), pages 1136-1153, October.
    2. Hayakawa, Kazunobu & Kim, Han-Sung & Yoshimi, Taiyo, 2017. "Exchange rate and utilization of free trade agreements: Focus on rules of origin," Journal of International Money and Finance, Elsevier, pages 93-108.
    3. Chu, Angus C. & Shen, Guobing & Zhang, Xun, 2017. "Imports and Intellectual Property Rights on Innovation in China," MPRA Paper 81706, University Library of Munich, Germany.
    4. José Fernández Donoso, 2015. "Foreign IPR, Trade and Innovation: Does complexity matter?," Serie Working Papers 23, Universidad del Desarrollo, School of Business and Economics.
    5. Gil S. Epstein & Odelia Heizler (Cohen), 2016. "Networks in the Diaspora," CReAM Discussion Paper Series 1604, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    6. Fernandez Donoso, Jose, 2017. "A simple index of innovation with complexity," Journal of Informetrics, Elsevier, vol. 11(1), pages 1-17.
    7. Sara Biancini & Pamela Bombarda, 2017. "Intellectual Property Rights, Multinational Firms and Technology Transfers," THEMA Working Papers 2017-16, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

    More about this item

    Keywords

    Intellectual property rights; International migration; Innovation; Knowledge flows; Brain drain; Diaspora;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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