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Intellectual Property Rights, Innovation and Development: Is Asia Different?

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  • Lee Branstetter

Abstract

For decades, economic policymakers in developing countries have resisted pressure to strengthen their intellectual property rights (IPR) systems. Many of them have pointed to the success of high-tech industries in Asia as confirmation of the view that keeping IPR systems weak at certain stages of economic development can function as an infant industry policy, stimulating the growth of technologically dynamic indigenous firms. This essay reviews recent econometric evidence on how changes in the IPR policy impact industrial development, and concludes that much of that evidence suggests that stronger IPR systems accelerate industrial development. The study then examines whether the lessons of Asia economic history really contradict that econometric evidence. The view presented here is that Asia is not really different. The current challenges faced by Asian firms in technologically dynamic industries suggest that long periods of industrial development under weak IPR systems can create problems that emerge in the longer run.

Suggested Citation

  • Lee Branstetter, 2017. "Intellectual Property Rights, Innovation and Development: Is Asia Different?," Millennial Asia, , vol. 8(1), pages 5-25, April.
    • Handle: RePEc:sae:millen:v:8:y:2017:i:1:p:5-25
    DOI: 10.1177/0976399616686860
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    2. Wonkyu Shin & Sehwan Oh & Sungho Rho, 2019. "Innovation and Exports of Korean Firms: How Do They Differ by Size and Industry?," Millennial Asia, , vol. 10(3), pages 249-271, December.
    3. Xiangfei Yuan & Haijing Hao & Chenghua Guan & Alex Pentland, 2021. "What are the key components of an entrepreneurial ecosystem in a developing economy? A longitudinal empirical study on technology business incubators in China," Papers 2103.08131, arXiv.org.
    4. Jonas Gamso & Robert Grosse, 2021. "Trade agreement depth, foreign direct investment, and the moderating role of property rights," Journal of International Business Policy, Palgrave Macmillan, vol. 4(2), pages 308-325, June.

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