IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/12057.html
   My bibliography  Save this paper

Negative Effects of Intellectual Property Protection: The unusual suspects?

Author

Listed:
  • TAKECHI Kazutaka

Abstract

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.

Suggested Citation

  • TAKECHI Kazutaka, 2012. "Negative Effects of Intellectual Property Protection: The unusual suspects?," Discussion papers 12057, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:12057
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/12e057.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. 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, September.
    5. Josh Lerner, 2002. "150 Years of Patent Protection," American Economic Review, American Economic Association, vol. 92(2), pages 221-225, May.
    6. 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.
    7. 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.
    8. 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, May.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    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. Palangkaraya, Alfons & Jensen, Paul H. & Webster, Elizabeth, 2017. "The effect of patents on trade," Journal of International Economics, Elsevier, vol. 105(C), pages 1-9.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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: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: (KUMAGAI, Akiko). General contact details of provider: http://edirc.repec.org/data/rietijp.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.

    If CitEc recognized a 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.

    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.