Trade-related intellectual property rights and product versus process innovations
The incentives of southern governments to protect process and product patents are examined in a game with endogenous research and development and licensing. Patent protection results in the licensing of cost-reducing process innovations to southern firms. By increasing competition, licensing provides an incentive for southern governments to protect process patents. However, optimal patent policy may involve restrictions in the form of licensing contracts. In the case of product innovations, licensing does not occur regardless of whether or not patents are protected. Thus, patent protection serves to reinforce monopoly power without increasing technology diffusion. Southern governments thus have a lower incentive to protect product patents. Copyright International Atlantic Economic Society 1999
Volume (Year): 27 (1999)
Issue (Month): 4 (December)
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References listed on IDEAS
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- Diwan, Ishac & Rodrik, Dani, 1991.
"Patents, appropriate technology, and North-South trade,"
Journal of International Economics,
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- Rockett, Katharine, 1990. "The quality of licensed technology," International Journal of Industrial Organization, Elsevier, vol. 8(4), pages 559-574, December.
- Michael L. Katz & Carl Shapiro, 1985. "On the Licensing of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 504-520, Winter.
- Nancy T. Gallini & Brian D. Wright, 1990. "Technology Transfer under Asymmetric Information," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 147-160, Spring.
- Alison Butler, 1990. "The trade-related aspects of intellectual property rights: what is at stake?," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 34-46.
- M. Scott Taylor, 1993. "TRIPS, Trade, and Technology Transfer," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 625-637, August. Full references (including those not matched with items on IDEAS)
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