IDEAS home Printed from https://ideas.repec.org/p/ucn/wpaper/200313.html
   My bibliography  Save this paper

Strategic intellectual property protection policy and North-South technology transfer

Author

Listed:
  • Alireza Naghavi

Abstract

I analyze the welfare implications of protecting intellectual property rights (IPR) in developing countries through its impact on innovation, market structure, and technology transfer. FDI, tariffs, and joint ventures (JV) are introduced to the strategic IPR literature. In a North-South trade environment, the South sets the IPR policy strategically by anticipating the Northern firm’s R&D expenditure and multinationalization decision. A stringent IPR policy is always chosen in order to motivate technology transfer through FDI, which in turn improves welfare. JVs bring in more profits for the Southern firm, but FDI is the optimal form of transfer in terms of welfare.

Suggested Citation

  • Alireza Naghavi, 2003. "Strategic intellectual property protection policy and North-South technology transfer," Working Papers 200313, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:200313
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10197/1309
    File Function: First version, 2003
    Download Restriction: no

    References listed on IDEAS

    as
    1. McCalman, Phillip, 2001. "Reaping what you sow: an empirical analysis of international patent harmonization," Journal of International Economics, Elsevier, pages 161-186.
    2. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, pages 1133-1137.
    3. 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.
    4. Neary, J Peter & Leahy, Dermot, 2000. "Strategic Trade and Industrial Policy towards Dynamic Oligopolies," Economic Journal, Royal Economic Society, vol. 110(463), pages 484-508, April.
    5. Gene M. Grossman & Edwin L.-C. Lai, 2004. "International Protection of Intellectual Property," American Economic Review, American Economic Association, pages 1635-1653.
    6. Neary, J Peter & O'Sullivan, Paul, 1999. " Beat 'Em or Join 'Em? Export Subsidies versus International Research Joint Ventures in Oligopolistic Markets," Scandinavian Journal of Economics, Wiley Blackwell, pages 577-596.
    7. Gene M. Grossman & Edwin L.-C. Lai, 2004. "International Protection of Intellectual Property," American Economic Review, American Economic Association, pages 1635-1653.
    8. Dixit, Avinash, 1980. "The Role of Investment in Entry-Deterrence," Economic Journal, Royal Economic Society, vol. 90(357), pages 95-106, March.
    9. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, pages 1133-1137.
    10. McCalman, Phillip, 2001. "Reaping what you sow: an empirical analysis of international patent harmonization," Journal of International Economics, Elsevier, pages 161-186.
    11. Olivier Cadot & Jaime de Melo & Marcelo Olarreaga, 2015. "The Protectionist Bias of Duty Drawbacks: Evidence from Mercosur," World Scientific Book Chapters,in: Developing Countries in the World Economy, chapter 15, pages 359-380 World Scientific Publishing Co. Pte. Ltd..
    12. Zigic, Kresimir, 1998. "Intellectual property rights violations and spillovers in North-South trade," European Economic Review, Elsevier, vol. 42(9), pages 1779-1799, November.
    13. Maskus, Keith E. & Penubarti, Mohan, 1995. "How trade-related are intellectual property rights?," Journal of International Economics, Elsevier, pages 227-248.
    14. Vishwasrao, Sharmila, 1994. "Intellectual property rights and the mode of technology transfer," Journal of Development Economics, Elsevier, pages 381-402.
    15. Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, pages 133-153.
    16. Glass, Amy Jocelyn & Saggi, Kamal, 2002. "Intellectual property rights and foreign direct investment," Journal of International Economics, Elsevier, pages 387-410.
    17. Keith Maskus, 2000. "Regulatory Standards in the WTO," Working Paper Series WP00-1, Peterson Institute for International Economics.
    18. R. Stephen Richardson & James D. Gaisford, 1996. "North-South Disputes over the Protection of Intellectual Property," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 376-381, April.
    19. Yang, Guifang & Maskus, Keith E., 2001. "Intellectual property rights, licensing, and innovation in an endogenous product-cycle model," Journal of International Economics, Elsevier, pages 169-187.
    20. Javorcik, Beata, 1999. "Composition of Foreign Direct Investment and Protection of Intellectual Property Rights in Transition Economies," CEPR Discussion Papers 2228, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Intellectual property rights; Joint ventures; Multinational firms; Technology transfer; North-South trade; Intellectual property--Developing countries; Joint ventures--Developing countries; Investments; Foreign--Developing countries; Technology transfer--Developing countries;

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    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:ucn:wpaper:200313. 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: (Nicolas Clifton). General contact details of provider: http://edirc.repec.org/data/educdie.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.