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A dynamic modelling approach to North-South disparities in IPR protection

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  • Hwan C Lin

Abstract

This article introduces a dynamic modelling approach to tackling North-South protection of intellectual property rights (IPRs) in a global general-equilibrium environment, where bidirectional R&D, region-specific needs, and creative destruction interact to give rise to an analytical challenge. A complicated dynamical system is solved numerically for policy experiments with the South strengthening IPRs to match the Northern standard. Surprisingly, the South can reap a net gain, but the North cannot, if the welfare metric takes into account each region’s dynamic transition to steady state. Yet, if the transition dynamics are ignored, such a North-South welfare scenario could be reversed. More surprisingly, the no-winner scenario may even emerge if innovation can cause creative destruction significantly. The article thus cautions against previous studies that neglect the general-equilibrium dynamics driven by the elements of bidirectional R&D, region-specific needs, and creative destruction.

Suggested Citation

  • Hwan C Lin, 2026. "A dynamic modelling approach to North-South disparities in IPR protection," Oxford Economic Papers, Oxford University Press, vol. 78(1), pages 132-156.
    • Handle: RePEc:oup:oxecpp:v:78:y:2026:i:1:p:132-156.
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    File URL: http://hdl.handle.net/10.1093/oep/gpaf024
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    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • 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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