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Does stronger intellectual property rights protection foster structural change? Effects of heterogeneity in innovations

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  • Bondarev, Anton

Abstract

This paper studies the question how changes in intellectual property rights (IPR) regime affect relative innovation intensity for multinational large enterprises (MNEs) and local firms. The R&D process is doubly-differentiated, allowing both for variety-expanding and productivity-improving innovations. The IPR regime is abstracted as an effective duration of patent protection. From one side stronger IPR foster R&D activities of the MNE, which is in agreement with other findings. From the other side the local innovative activity is threatened by stronger protection. Depending on technical characteristics of the underlying R&D processes, the strengthening of the uniform one-size-fits-all IPR creates productivity bias or variety bias. Moreover, if technologies are heterogeneous, this bias varies over time implying the necessity of technology-specific heterogeneous IPR protection regimes to foster structural change and avoid technology lock-ins.

Suggested Citation

  • Bondarev, Anton, 2018. "Does stronger intellectual property rights protection foster structural change? Effects of heterogeneity in innovations," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 26-42.
    • Handle: RePEc:eee:streco:v:46:y:2018:i:c:p:26-42
    DOI: 10.1016/j.strueco.2018.03.005
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    Cited by:

    1. Leandro M. Meller, 2022. "Patent Length and Breadth as Policy Instruments: A Systematic Review of Recent Contributions to the Theory of Optimal Patent Design," Working Papers 192, Red Nacional de Investigadores en Economía (RedNIE).
    2. Xuemeng Guo & Ke Guo & Hanzhong Zheng, 2023. "Industrial Agglomeration and Enterprise Innovation Sustainability: Empirical Evidence from the Chinese A-Share Market," Sustainability, MDPI, vol. 15(15), pages 1-26, July.
    3. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: A Bayesian analysis of multi-level spatial correlation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 156-165.
    4. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: a Bayesian analysis of multi-level spatial correlation," LSE Research Online Documents on Economics 114290, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Heterogeneous innovations; Intellectual property rights; Structral change; Double differentiation; Technology lock-in;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • L0 - Industrial Organization - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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