Patent Protection, Innovation Rate and Welfare
In the context of international technology transfer from the developed North to the developing South, this paper analyses the impact of the Southern patent protection on the innovation rate in the North and the welfare effect in the South. In a two-period model, we show how the different modes of technology transfers (licensing or subsidiary) affect the R&D incentive and thereby the rate of innovation in the North. It is shown that under the licensing contract, no patent protection in the South is best for the South as it increases the innovation rate in the North, thereby leading to greater welfare in the South. We also argue for certain degree of patent protection in the South for maximization of its welfare under some parameter configurations.
|Date of creation:||Sep 2001|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.fas.nus.edu.sg/ecs/index.html|
More information through EDIRC
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.:
- Philippe Aghion & Jean Tirole, 1994. "The Management of Innovation," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 1185-1209.
- Grossman, G.M. & Helpman, E., 1989.
"Endogenous Prduct Cycles,"
144, Princeton, Woodrow Wilson School - Public and International Affairs.
- Aghion, P. & Tirole, J., 1993.
"On the Management of Innovation,"
93-12, Massachusetts Institute of Technology (MIT), Department of Economics.
- Paul M. Romer, 1989. "Increasing Returns and New Developments in the Theory of Growth," NBER Working Papers 3098, National Bureau of Economic Research, Inc.
- Segerstrom, Paul S & Anant, T C A & Dinopoulos, Elias, 1990. "A Schumpeterian Model of the Product Life Cycle," American Economic Review, American Economic Association, vol. 80(5), pages 1077-91, December.
- Markusen, James R., 2001.
"Contracts, intellectual property rights, and multinational investment in developing countries,"
Journal of International Economics,
Elsevier, vol. 53(1), pages 189-204, February.
- James R. Markusen, 1998. "Contracts, Intellectual Property Rights, and Multinational Investment in Developing Countries," NBER Working Papers 6448, National Bureau of Economic Research, Inc.
- Helpman, Elhanan, 1993.
"Innovation, Imitation, and Intellectual Property Rights,"
Econometric Society, vol. 61(6), pages 1247-80, November.
- Elhanan Helpman, 1992. "Innovation, Imitation, and Intellectual Property Rights," NBER Working Papers 4081, National Bureau of Economic Research, Inc.
- Helpman, E., 1992. "Innovation, Imitation and intellectual Property Rights," Harvard Institute of Economic Research Working Papers 1597, Harvard - Institute of Economic Research.
- Fosfuri, Andrea, 2000. "Patent protection, imitation and the mode of technology transfer," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1129-1149, October.
- Diwan, Ishac & Rodrik, Dani, 1989.
"Patents, appropriate technology, and North-South trade,"
Policy Research Working Paper Series
251, The World Bank.
- Diwan, Ishac & Rodrik, Dani, 1991. "Patents, appropriate technology, and North-South trade," Journal of International Economics, Elsevier, vol. 30(1-2), pages 27-47, February.
- Ishac Diwan & Dani Rodrik, 1989. "Patents, Appropriate Technology, and North-South Trade," NBER Working Papers 2974, National Bureau of Economic Research, Inc.
- Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, vol. 55(1), pages 133-153, February.
- Deardorff, Alan V, 1992. "Welfare Effects of Global Patent Protection," Economica, London School of Economics and Political Science, vol. 59(233), pages 35-51, February.
- Grossman, G.M. & Helpman, E., 1989.
"Endogemour Product Cycles,"
10-89, Tel Aviv.
When requesting a correction, please mention this item's handle: RePEc:nus:nusewp:wp0106. 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: ()
If references are entirely missing, you can add them using this form.