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Patent Reforms and Exporter Behaviour: Firm-Level Evidence from Developing Countries

In: Globalization and Welfare Impacts of International Trade

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  • Olena Ivus
  • Walter Park

Abstract

Using product-level data from 1997 to 2014, this paper examines the impact of patent reforms on the microfoundations of developing countries’ export growth. In a difference-in-difference setting, we compare exporter characteristics in sectors intensive in intellectual property (IP) relative to non-IP-intensive sectors. We find that high-IP exports expanded along the extensive (firm-count) margin around the time of the reforms, but with the passage of time expansions along the intensive (firm size) margin took on more importance. Changes in the exporting behaviour of entrants were the key drivers, while incumbents were largely unaffected. Exporter entry and exit rates in IP-intensive sectors rose after the reforms, shifting the distribution of exporters towards larger and more IP-intensive firms. The first year survival rate of entrants was unaffected, but the destination entry rate of survivors fell. The findings signify that patent reforms did influence local productive and innovative capacity of developing countries.
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Suggested Citation

  • Olena Ivus & Walter Park, 2018. "Patent Reforms and Exporter Behaviour: Firm-Level Evidence from Developing Countries," NBER Chapters, in: Globalization and Welfare Impacts of International Trade, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:14336
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    Cited by:

    1. 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.
    2. 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).
    3. 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).
    4. Canals, Claudia & Klein, Michael A & Sener, Fuat, 2021. "Intellectual Property-Related Preferential Trade Agreements and Offshoring to Developing Countries," MPRA Paper 107694, University Library of Munich, Germany.
    5. Olena Ivus & Alireza Naghavi & Larry D. Qiu, 2019. "Migration and Imitation," Development Working Papers 457, Centro Studi Luca d'Agliano, University of Milano.
    6. Yan Liu & Walter G. Park & Dahai Fu, 2021. "Export quality and patent protection: Stage‐dependent effects in development," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 601-629, May.

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    More about this item

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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