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Strategic Intellectual Property Protection Policy and North-South Technology Transfer

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  • Alireza Naghavi

    (University College Dublin)

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
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    References listed on IDEAS

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    More about this item

    Keywords

    intellectual property rights; technology transfer; multinational firms; joint ventures; North-South trade;
    All these keywords.

    JEL classification:

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

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