Welfare Effects of Intellectual Property Rights Under Asymmetric Spillovers
We develop a model with one innovating northern firm and several heterogeneous Southern firms that compete in a final product market. We assume the southern firms differ in their ability to adapt technology and use this heterogeneity to study the differing incentives of southern governments to protect intellectual property rights. We find that governments representing more efficient firms have greater incentive to protect IPR than do those representing less efficient firms. However, efficiency considerations imply that, given policies resulting in the same overall innovation rate, it would be better to have weaker IPR protection for the more efficient southern firms.
|Date of creation:||23 Oct 2004|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
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- Judith C. Chin & Gene M. Grossman, 1988.
"Intellectual Property Rights and North-South Trade,"
NBER Working Papers
2769, National Bureau of Economic Research, Inc.
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- Zigic, Kresimir, 1998. "Intellectual property rights violations and spillovers in North-South trade," European Economic Review, Elsevier, vol. 42(9), pages 1779-1799, November.
- Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1988. "Appropriating the Returns from Industrial R&D," Cowles Foundation Discussion Papers 862, Cowles Foundation for Research in Economics, Yale University.
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