IDEAS home Printed from https://ideas.repec.org/a/wly/canjec/v51y2018i2p483-509.html
   My bibliography  Save this article

Domestic patent rights, access to technologies and the structure of exports

Author

Listed:
  • Keith E. Maskus
  • Lei Yang

Abstract

Recent years have seen major reforms in patent laws around the world. We study the effects of variations over time and across countries in the strength of domestic patent rights (PRs) on exports in high‐R&D goods. Adopting a generalized factor‐proportions framework, we interact industry research intensity with national PRs. Countries with stronger PRs have significantly greater exports in research‐intensive sectors. These effects are positive in emerging and developing economies but smaller than in developed economies. The sensitivity of high‐R&D exports to PRs rises with inward flows of patent applications, FDI employment and intra‐firm trade with multinational firms. Résumé Droits de brevet domestiques, accès aux technologies, et structure des exportations. Au cours des années récentes, on a vu des réformes majeures du droit des brevets autour du monde. On étudie les effets de variations (dans le temps et entre pays) dans la robustesse des droits de brevet domestiques (DBs) sur les exportations des biens à forte intensité de R&D. À l’aide d’un cadre de référence généralisé axé sur les proportions de facteurs, on étudie les interactions entre l’intensité en recherche des industries et les DBs nationaux. Les pays dotés de DBs plus robustes ont des exportations plus grandes de manière significative dans les secteurs à forte intensité de recherche. Ces effets sont positifs dans les pays en émergence et en voie de développement, mais plus faibles dans les pays développés. La sensibilité des exportations de biens à forte intensité de R&D aux régimes de DBs s’accroît à proportion que s’accroissent les flux d’applications de brevets en provenance de l’extérieur, l’emploi attaché aux flux d’investissements direct de l’étranger, et le volume du commerce intra‐firme avec les firmes plurinationales.

Suggested Citation

  • Keith E. Maskus & Lei Yang, 2018. "Domestic patent rights, access to technologies and the structure of exports," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(2), pages 483-509, May.
  • Handle: RePEc:wly:canjec:v:51:y:2018:i:2:p:483-509
    DOI: 10.1111/caje.12328
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/caje.12328
    Download Restriction: no

    File URL: https://libkey.io/10.1111/caje.12328?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrei A. Levchenko, 2013. "International Trade and Institutional Change," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 29(5), pages 1145-1181, October.
    2. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    3. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 569-600.
    4. Lai, Edwin L.-C. & Yan, Isabel K.M., 2013. "Would global patent protection be too weak without international coordination?," Journal of International Economics, Elsevier, vol. 89(1), pages 42-54.
    5. Branstetter, Lee & Fisman, Ray & Foley, C. Fritz & Saggi, Kamal, 2011. "Does intellectual property rights reform spur industrial development?," Journal of International Economics, Elsevier, vol. 83(1), pages 27-36, January.
    6. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
    7. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    8. Smith, Pamela J., 1999. "Are weak patent rights a barrier to U.S. exports?," Journal of International Economics, Elsevier, vol. 48(1), pages 151-177, June.
    9. Rajan, Raghuram G & Zingales, Luigi, 1998. "Financial Dependence and Growth," American Economic Review, American Economic Association, vol. 88(3), pages 559-586, June.
    10. Wolfgang Keller & Stephen Ross Yeaple, 2013. "The Gravity of Knowledge," American Economic Review, American Economic Association, vol. 103(4), pages 1414-1444, June.
    11. Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
    12. Pol Antràs, 2005. "Incomplete Contracts and the Product Cycle," American Economic Review, American Economic Association, vol. 95(4), pages 1054-1073, September.
    13. Nadiri, M Ishaq & Prucha, Ingmar R, 1996. "Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 43-56, January.
    14. John Romalis, 2004. "Factor Proportions and the Structure of Commodity Trade," American Economic Review, American Economic Association, vol. 94(1), pages 67-97, March.
    15. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    16. Andrei A. Levchenko, 2007. "Institutional Quality and International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(3), pages 791-819.
    17. Kristie Briggs & Walter G. Park, 2014. "There will be exports and licensing: The effects of patent rights and innovation on firm sales," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1112-1144, December.
    18. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    19. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    20. Hagedoorn, John & Cloodt, Myriam, 2003. "Measuring innovative performance: is there an advantage in using multiple indicators?," Research Policy, Elsevier, vol. 32(8), pages 1365-1379, September.
    21. Awokuse, Titus O. & Yin, Hong, 2010. "Does Stronger Intellectual Property Rights Protection Induce More Bilateral Trade? Evidence from China's Imports," World Development, Elsevier, vol. 38(8), pages 1094-1104, August.
    22. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May.
    23. Keith E. Maskus, 2012. "Private Rights and Public Problems: The Global Economics of Intellectual Property in the 21st Century," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 5072, October.
    24. Mercedes Delgado & Margaret Kyle & Anita M. McGahan, 2013. "Intellectual Property Protection and the Geography of Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 733-762, September.
    25. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    26. Yang, Lei & Maskus, Keith E., 2009. "Intellectual property rights, technology transfer and exports in developing countries," Journal of Development Economics, Elsevier, vol. 90(2), pages 231-236, November.
    27. Wonkyu Shin & Keun Lee & Walter G. Park, 2016. "When an Importer's Protection of IPR Interacts with an Exporter's Level of Technology: Comparing the Impacts on the Exports of the North and South," The World Economy, Wiley Blackwell, vol. 39(6), pages 772-802, June.
    28. Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, vol. 55(1), pages 133-153, February.
    29. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    30. Catherine Y. Co, 2004. "Do Patent Rights Regimes Matter?," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 359-373, August.
    31. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 321-349.
    32. Albert G.Z. Hu & I.P.L. Png, 2013. "Patent rights and economic growth: evidence from cross-country panels of manufacturing industries," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 675-698, July.
    33. Smith, Pamela J., 2001. "How do foreign patent rights affect U.S. exports, affiliate sales, and licenses?," Journal of International Economics, Elsevier, vol. 55(2), pages 411-439, December.
    34. Yang, Guifang & Maskus, Keith E., 2001. "Intellectual property rights, licensing, and innovation in an endogenous product-cycle model," Journal of International Economics, Elsevier, vol. 53(1), pages 169-187, February.
    35. Ivus, Olena, 2010. "Do stronger patent rights raise high-tech exports to the developing world?," Journal of International Economics, Elsevier, vol. 81(1), pages 38-47, May.
    36. Taylor, M Scott, 1994. "TRIPs, Trade, and Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 361-381, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Dussaux, Damien & Dechezleprêtre, Antoine & Glachant, Matthieu, 2022. "The impact of intellectual property rights protection on low-carbon trade and foreign direct investments," Energy Policy, Elsevier, vol. 171(C).
    2. Claudia Canals & Michael A. Klein & Fuat Şener, 2023. "Intellectual property‐related preferential trade agreements and US offshoring to developing countries," Review of International Economics, Wiley Blackwell, vol. 31(4), pages 1442-1475, September.
    3. Olena Ivus & Walter G. Park, 2022. "All rights reserved: Copyright protection and multinational knowledge transfers," Economic Inquiry, Western Economic Association International, vol. 60(3), pages 1064-1091, July.
    4. Willoughby, Kelvin W. & Mullina, Nadezhda, 2021. "Reverse innovation, international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation," Technology in Society, Elsevier, vol. 67(C).
    5. Inmaculada Martínez-Zarzoso & Santiago Chelala, 2021. "Trade agreements and international technology transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(3), pages 631-665, August.
    6. Ndubuisi, Gideon, 2019. "Domestic intellectual property rights protection and exports: Accessing the credit channel," MERIT Working Papers 2019-017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Doanh, Nguyen Khanh & Gam, Nguyen Thi & Heo, Yoon, 2022. "The impact of intellectual property rights protection on trade: The role of a “third country” in market power and market expansion effects," Economic Systems, Elsevier, vol. 46(1).
    8. Robert Gmeiner, 2021. "International free riding on institutions," Economic Affairs, Wiley Blackwell, vol. 41(1), pages 123-140, February.
    9. Gmeiner, Robert & Gmeiner, Michael, 2021. "Encouraging domestic innovation by protecting foreign intellectual property," International Review of Law and Economics, Elsevier, vol. 67(C).
    10. Gaoju Yang & Yilu Zhang & Xiao Yu, 2020. "Intellectual property rights and the upgrading of the global value chain status," Pacific Economic Review, Wiley Blackwell, vol. 25(2), pages 185-204, May.
    11. Maskus,Keith E. & Ridley,William Clifton, 2021. "Trade Impacts of Intellectual-Property-Related PTAs : Evidence from Using the World Bank Deep Trade Agreements Database," Policy Research Working Paper Series 9659, The World Bank.
    12. Ivus, Olena & Park, Walter, 2019. "Patent reforms and exporter behaviour: Firm-level evidence from developing countries," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 129-147.
    13. Evangelia Chalioti & Kyriakos Drivas & Sarantis Kalyvitis & Margarita Katsimi, 2020. "Innovation, patents and trade: A firm‐level analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 949-981, August.
    14. Zhang, Dongyang, 2022. "Environmental regulation, green innovation, and export product quality: What is the role of greenwashing?," International Review of Financial Analysis, Elsevier, vol. 83(C).
    15. Maskus, Keith E. & Milani, Sahar & Neumann, Rebecca, 2019. "The impact of patent protection and financial development on industrial R&D," Research Policy, Elsevier, vol. 48(1), pages 355-370.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Keith E. MASKUS & Lei YANG, 2013. "The Impacts of Post-TRIPS Patent Reforms on the Structure of Exports," Discussion papers 13030, Research Institute of Economy, Trade and Industry (RIETI).
    2. Pamela J. Smith & Sebastian J. Anti, 2022. "How does TRIPs compliance affect the economic growth of developing countries? Application of the Synthetic Control method," The World Economy, Wiley Blackwell, vol. 45(12), pages 3873-3906, December.
    3. Biancini, Sara & Bombarda, Pamela, 2021. "Intellectual property rights, multinational firms and technology transfers," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 191-210.
    4. Huiwen Lai & Keith E. Maskus & Lei Yang, 2018. "Intellectual Property Enforcement, Exports and Productivity: Evidence from China," RSCAS Working Papers 2018/39, European University Institute.
    5. Kamal Saggi, 2016. "Trade, Intellectual Property Rights, and the World Trade Organization," Vanderbilt University Department of Economics Working Papers 16-00014, Vanderbilt University Department of Economics.
    6. Lin, Jenny X. & Lincoln, William F., 2017. "Pirate's treasure," Journal of International Economics, Elsevier, vol. 109(C), pages 235-245.
    7. Ma, Yue & Qu, Baozhi & Zhang, Yifan, 2010. "Judicial quality, contract intensity and trade: Firm-level evidence from developing and transition countries," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 146-159, June.
    8. Nemlioglu, Ilayda & Mallick, Sushanta, 2020. "Does multilateral lending aid capital accumulation? Role of intellectual capital and institutional quality," Journal of International Money and Finance, Elsevier, vol. 108(C).
    9. Pamela Smith & Xiangwen Kong, 2022. "Intellectual property rights and trade: The exceptional case of GMOs," The World Economy, Wiley Blackwell, vol. 45(3), pages 763-811, March.
    10. Ivus, Olena & Park, Walter, 2019. "Patent reforms and exporter behaviour: Firm-level evidence from developing countries," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 129-147.
    11. Dong, Baomin & Guo, Yibei & Hu, Xiaotian, 2022. "Intellectual property rights protection and export product quality: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 143-158.
    12. Mercedes Campi & Marco Dueñas & Matteo Barigozzi & Giorgio Fagiolo, 2019. "Intellectual property rights, imitation, and development. The effect on cross-border mergers and acquisitions," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(2), pages 230-256, February.
    13. Anja, Breitwieser & Neil, Foster, 2012. "Intellectual property rights, innovation and technology transfer: a survey," MPRA Paper 36094, University Library of Munich, Germany.
    14. Martin Strieborny & Madina Kukenova, 2016. "Investment in Relationship-Specific Assets: Does Finance Matter?," Review of Finance, European Finance Association, vol. 20(4), pages 1487-1515.
    15. Claire Brunel & Thomas Zylkin, 2022. "Do cross‐border patents promote trade?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 379-418, February.
    16. Jenny X. Lin & William Lincoln, 2017. "Pirate’s Treasure," Working Papers 17-51, Center for Economic Studies, U.S. Census Bureau.
    17. Bhattacharya, Sourav & Chakraborty, Pavel & Chatterjee, Chirantan, 2022. "Intellectual property regimes and wage inequality," Journal of Development Economics, Elsevier, vol. 154(C).
    18. Lai, Huiwen & Maskus, Keith E. & Yang, Lei, 2020. "Intellectual property enforcement, exports and productivity of heterogeneous firms in developing countries: Evidence from China," European Economic Review, Elsevier, vol. 123(C).
    19. Fromenteau, Philippe, 2016. "Information Technology and Global Sourcing," Discussion Papers in Economics 29631, University of Munich, Department of Economics.
    20. Lee Branstetter & Raymond Fisman & C. Fritz Foley, 2005. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U.S. Firm-Level Data," NBER Working Papers 11516, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    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:wly:canjec:v:51:y:2018:i:2:p:483-509. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1540-5982 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.