Intellectual Property Protection and the Licensing of Technology to Developing Countries
In this paper we study the influence of stronger intellectual property protection on technology transfer into developing countries via licensing. Using panel data for the post-TRIPs period 1995-2005, we find that stronger protection is associated with increased royalty and license fee payments by developing countries, implying greater technology transfer into these countries. This result is robust to the inclusion of country fixed effects, as well as alternative specifications of the model estimated. The strong overall statistical significance of the protection variable is found to be driven by the sub-index of coverage, which makes eminent sense in view of the substantial increase in the coverage of patentable subject matter by developing countries post- TRIPs. Other factors of importance are scale variables such as per capita income and population, as well as human capital and trade openness of the technology-importing countries. The economic significance of the protection variable also appears to be substantial, with changes in this variable accounting for technology inflows of about US $3.4 billion to US $5.5 billion (base year 2000) in the post-TRIPs sample period. These magnitudes comprise 3.5% to 5.7% of the total value of royalty and license fees over 1995-2005 (at 2000 prices). Overall, our results are noteworthy.
|Date of creation:||Jul 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Delhi 110 007|
Phone: (011) 27667005
Fax: (011) 27667159
Web page: http://www.cdedse.org/
More information through EDIRC
|Order Information:|| Web: http://www.cdedse.org/ Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. Barro, 1991.
"Economic Growth in a Cross Section of Countries,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 106(2), pages 407-443.
- Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
- Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
- Walter G. Park & Douglas C. Lippoldt, 2004. "International Licensing and the Strengthening of Intellectual Property Rights in Developing Countries," OECD Trade Policy Papers 10, OECD Publishing.
- 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.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
- Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-23, May.
- Uday Sinha, 2006. "Patent Enforcement, Innovation and Welfare," Journal of Economics, Springer, vol. 88(3), pages 211-241, 09.
- Dinopoulos, Elias & Segerstrom, Paul, 2010. "Intellectual property rights, multinational firms and economic growth," Journal of Development Economics, Elsevier, vol. 92(1), pages 13-27, May.
- Guifang Yang & Keith Maskus, 2001. "Intellectual property rights and licensing: An econometric investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 58-79, March.
- Fosfuri, Andrea, 2002. "Country risk and the international flows of technology: evidence from the chemical industry," DEE - Working Papers. Business Economics. WB wb022514, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
- 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.
- Michael W Nicholson, 2007. "The Impact of Industry Characteristics and IPR Policy on Foreign Direct Investment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(1), pages 27-54, April.
- Anand, Bharat N & Khanna, Tarun, 2000. "The Structure of Licensing Contracts," Journal of Industrial Economics, Wiley Blackwell, vol. 48(1), pages 103-35, March.
- Vishwasrao, Sharmila, 1994. "Intellectual property rights and the mode of technology transfer," Journal of Development Economics, Elsevier, vol. 44(2), pages 381-402, August.
When requesting a correction, please mention this item's handle: RePEc:cde:cdewps:188. 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: (Sanjeev Sharma)
If references are entirely missing, you can add them using this form.