Negative Effects of Intellectual Property Protection: The unusual suspects?
The negative effects of intellectual property protection (IPP) on trade volume were found in previous research findings in which market power effects dominate market expansion effects. Because both effects increase profits, IPP induces entry without ambiguity. However, using product-level entry data, negative effects on market supply are found after controlling for country-specific effects. An examination of entry mode choice (direct supply vs. licensing) reveals that while the direct supply mode is negatively related to IPP, licensing is not, implying that firms facing infringement risk or intense competition may avoid direct supply in IPP-stringent countries.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
More information through EDIRC
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.:
- 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.
- Margaret K. Kyle, 2007. "Pharmaceutical Price Controls and Entry Strategies," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 88-99, February.
- Josh Lerner, 2000.
"150 Years of Patent Protection,"
NBER Working Papers
7478, National Bureau of Economic Research, Inc.
- 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.
- Jay Pil Choi & Carl Davidson, 2004. "Strategic Second Sourcing by Multinationals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(2), pages 579-600, 05.
- 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.
- 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.
- Suzanne Scotchmer, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter.
- Margaret K. Kyle, 2006. "The role of firm characteristics in pharmaceutical product launches," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 602-618, 09.
- McCalman, Phillip, 2004. "Foreign direct investment and intellectual property rights: evidence from Hollywood's global distribution of movies and videos," Journal of International Economics, Elsevier, vol. 62(1), pages 107-123, January.
- Wen-Hsien Liu & Ya-Chi Lin, 2005. "Foreign patent rights and high-tech exports: evidence from Taiwan," Applied Economics, Taylor & Francis Journals, vol. 37(13), pages 1543-1555.
- Maskus, Keith E. & Penubarti, Mohan, 1995. "How trade-related are intellectual property rights?," Journal of International Economics, Elsevier, vol. 39(3-4), pages 227-248, November.
- Mukesh Eswaran, 1994. "Cross-Licensing of Competing Patents as a Facilitating Device," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 689-708, August.
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:12057. 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: (NUKATANI Sorahiko)
If references are entirely missing, you can add them using this form.