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IPR infringement in the United States: impacts on the input and output of R&D

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  • Rajeev K. Goel

    (Illinois State University
    Kiel Institute for the World Economy)

Abstract

This paper examines the impact of intellectual property rights (IPR) infringement on the input (R&D spending) and output (patents) of the research process. The extant literature proxies IPR enforcement via composite indices or indicators of institutional quality, whereas this paper employs a direct (hard) measure of IPR crimes. Using data across U.S. states, results show that IPR crimes reduce research spending but do not impact patenting. Upon comparison with a broader measure of weak institutional quality (corruption), we find that greater corruption has a robust negative effect on patenting, but not on R&D spending. Quantitatively, the elasticities of R&D spending with respect to IPR crimes are greater than those of patents with respect to corruption, suggesting that studies that proxy IPR crimes via other measures are likely underestimating their impacts on technological change.

Suggested Citation

  • Rajeev K. Goel, 2020. "IPR infringement in the United States: impacts on the input and output of R&D," The Journal of Technology Transfer, Springer, vol. 45(2), pages 481-493, April.
    • Handle: RePEc:kap:jtecht:v:45:y:2020:i:2:d:10.1007_s10961-018-9708-y
    DOI: 10.1007/s10961-018-9708-y
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    References listed on IDEAS

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    1. Goel, Rajeev K., 2002. "Uncertain Patent Scope and R&D Investment," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 55(1), pages 17-24.
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    7. Maryann Feldman, 1999. "The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 5-25.
    8. Eugen Dimant & Guglielmo Tosato, 2018. "Causes And Effects Of Corruption: What Has Past Decade'S Empirical Research Taught Us? A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 335-356, April.
    9. Goel, Rajeev K. & Saunoris, James W., 2016. "Institutional path dependence and international research intensity," Economic Modelling, Elsevier, vol. 52(PB), pages 851-858.
    10. Vincenzo Denicoliò & Luigi Alberto Franzoni, 2011. "Weak Intellectual Property Rights, Research Spillovers, and the Incentive to Innovate," American Law and Economics Review, American Law and Economics Association, vol. 14(1), pages 111-140.
    11. Krammer, Sorin M.S., 2015. "Do good institutions enhance the effect of technological spillovers on productivity? Comparative evidence from developed and transition economies," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 133-154.
    12. Coe, David T. & Helpman, Elhanan & Hoffmaister, Alexander W., 2009. "International R&D spillovers and institutions," European Economic Review, Elsevier, vol. 53(7), pages 723-741, October.
    13. Stanley M. Besen & Leo J. Raskind, 1991. "An Introduction to the Law and Economics of Intellectual Property," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 3-27, Winter.
    14. Rajeev K. Goel & James W. Saunoris & Xingyuan Zhang, 2016. "Intranational And International Knowledge Flows: Effects On The Formal And Informal Sectors," Contemporary Economic Policy, Western Economic Association International, vol. 34(2), pages 297-311, April.
    15. Cohen, Wesley M. & Goto, Akira & Nagata, Akiya & Nelson, Richard R. & Walsh, John P., 2002. "R&D spillovers, patents and the incentives to innovate in Japan and the United States," Research Policy, Elsevier, vol. 31(8-9), pages 1349-1367, December.
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    Cited by:

    1. Rajeev K. Goel, 2023. "Seek foreign funds or technology? Relative impacts of different spillover modes on innovation," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1466-1488, August.
    2. Jiaming Jiang & Rajeev K. Goel & Xingyuan Zhang, 2020. "IPR policies and determinants of membership in Standard Setting Organizations: a social network analysis," Netnomics, Springer, vol. 21(1), pages 129-154, December.
    3. German Blanco & Rajeev K. Goel & Rati Ram, 2023. "What drives the production and diffusion of mobile apps? An international investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 828-838, March.
    4. Rajeev K. Goel & Michael A. Nelson, 2021. "Corrupt encounters of the fairer sex: female entrepreneurs and their corruption perceptions/experience," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1973-1994, December.
    5. Dirk Dohse & Rajeev K. Goel & Devrim Göktepe‐Hultén, 2021. "Paths academic scientists take to entrepreneurship: Disaggregating direct and indirect influences," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1740-1753, October.
    6. Rajeev K. Goel & James W. Saunoris, 2020. "Design versus utility innovation: Is corruption sanding or greasing the wheels of innovation?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 848-860, July.
    7. Wenjing Wang & Yiwei Liu, 2022. "Industrial funding and university technology transfer: the moderating role of intellectual property rights enforcement," The Journal of Technology Transfer, Springer, vol. 47(5), pages 1549-1572, October.

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    More about this item

    Keywords

    Intellectual property rights (IPR); R&D; Patents; Corruption; Institutions; United States;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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