IDEAS home Printed from https://ideas.repec.org/a/sej/ancoec/v692y2002p381-397.html
   My bibliography  Save this article

Shall the Northern Optimal R&D Subsidy Rate Inversely Respond to Southern Intellectual Property Protection?

Author

Listed:
  • Hwan C. Lin

    () (Belk College of Business Administration, University of North Carolina at Charlotte)

Abstract

Empirical studies have found that decentralized economies typically underinvest in research and development (R&D). This paper shows that to promote R&D investment, the innovating North's optimal subsidy rate may not necessarily fall in response to the imitating South's strengthening intellectual property protection (IPP), depending on the elasticity of demand for innovative goods. As numerical simulations indicate, if the demand is less elastic, a tightening of Southern IPP (increase in patent life) tends to allow the self-interested North a smaller optimal subsidy rate. Yet, this relation is overturned if the demand is elastic enough. I also find that worldwide welfare maximization requires a regime of Southern IPP that is neither as stringent as the North favors nor as lax as the South prefers.

Suggested Citation

  • Hwan C. Lin, 2002. "Shall the Northern Optimal R&D Subsidy Rate Inversely Respond to Southern Intellectual Property Protection?," Southern Economic Journal, Southern Economic Association, vol. 69(2), pages 381-397, October.
  • Handle: RePEc:sej:ancoec:v:69:2:y:2002:p:381-397
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liao, Pei-Cheng & Wong, Kar-yiu, 2009. "R&D subsidy, intellectual property rights protection, and North-South trade: How good is the TRIPS agreement?," Japan and the World Economy, Elsevier, vol. 21(2), pages 191-201, March.
    2. Lin, Hwan C., 2010. "Optimizing international technology diffusion: A middle-income country's perspective," Economic Modelling, Elsevier, vol. 27(1), pages 54-66, January.
    3. Lin, Hwan C., 2010. "Technology diffusion and global welfare effects: Imitative R&D vs. South-bound FDI," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 231-247, November.
    4. Chu, Angus C. & Wang, Xilin, 2019. "Effects of R&D Subsidies in a Hybrid Model of Endogenous Growth and Semi-Endogenous Growth," MPRA Paper 94620, University Library of Munich, Germany.
    5. repec:red:issued:17-109 is not listed on IDEAS
    6. Peter Ebbes, 2007. "A non-technical guide to instrumental variables and regressor-error dependencies (in Russian)," Quantile, Quantile, issue 2, pages 3-20, March.
    7. Angus Chu & Guido Cozzi, 2018. "Effects of Patents versus R&D subsidies on Income Inequality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 29, pages 68-84, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:69:2:y:2002:p:381-397. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini) The email address of this maintainer does not seem to be valid anymore. Please ask Laura Razzolini to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/seaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.