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Legal enforcement against illegal imitation in developing countries

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  • Keishun Suzuki

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Abstract

This study investigates the effect of intellectual property rights (IPR) enforcement in a developing country on imitation, innovation, economic growth, and welfare using a North–South quality ladder model. Unlike existing studies, this study explicitly distinguishes IPR protection and IPR enforcement by incorporating illegal imitation and seizure activity into the model. The four main results are, first, a higher seizure rate does not always decrease imitation rate in the South. Second, a higher seizure rate does not always encourage innovation in the North. Third, although a sufficiently high seizure rate is required to enhance economic growth, such a policy reform would deteriorates welfare in both the North and South. Finally, unlike seizure, prohibiting imports of illegal imitations from the South always lowers illegal imitation. Copyright Springer-Verlag Wien 2015

Suggested Citation

  • Keishun Suzuki, 2015. "Legal enforcement against illegal imitation in developing countries," Journal of Economics, Springer, vol. 116(3), pages 247-270, November.
  • Handle: RePEc:kap:jeczfn:v:116:y:2015:i:3:p:247-270
    DOI: 10.1007/s00712-015-0436-6
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    File URL: http://hdl.handle.net/10.1007/s00712-015-0436-6
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    References listed on IDEAS

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    1. Furukawa, Yuichi, 2007. "The protection of intellectual property rights and endogenous growth: Is stronger always better?," Journal of Economic Dynamics and Control, Elsevier, vol. 31(11), pages 3644-3670, November.
    2. Ryo Horii & Tatsuro Iwaisako, 2007. "Economic Growth with Imperfect Protection of Intellectual Property Rights," Journal of Economics, Springer, vol. 90(1), pages 45-85, January.
    3. Iwaisako, Tatsuro & Tanaka, Hitoshi & Futagami, Koichi, 2011. "A welfare analysis of global patent protection in a model with endogenous innovation and foreign direct investment," European Economic Review, Elsevier, vol. 55(8), pages 1137-1151.
    4. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
    5. Uday Sinha, 2006. "Patent Enforcement, Innovation and Welfare," Journal of Economics, Springer, vol. 88(3), pages 211-241, September.
    6. Mansfield, Edwin & Schwartz, Mark & Wagner, Samuel, 1981. "Imitation Costs and Patents: An Empirical Study," Economic Journal, Royal Economic Society, vol. 91(364), pages 907-918, December.
    7. Glass, Amy Jocelyn & Saggi, Kamal, 2002. "Intellectual property rights and foreign direct investment," Journal of International Economics, Elsevier, vol. 56(2), pages 387-410, March.
    8. Park, Walter G., 2008. "International patent protection: 1960-2005," Research Policy, Elsevier, vol. 37(4), pages 761-766, May.
    9. Peter Gustafsson & Paul S. Segerstrom, 2011. "North–South Trade With Multinational Firms And Increasing Product Variety," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1123-1155, November.
    10. Akiyama, Taro & Furukawa, Yuichi, 2009. "Intellectual property rights and appropriability of innovation," Economics Letters, Elsevier, vol. 103(3), pages 138-141, June.
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    More about this item

    Keywords

    Illegal imitation; Intellectual property rights enforcement; Import prohibition; F43; O34; L51;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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