Abstract

The goal of this research is to investigate the link between cognitive abilities, as measured by cognitive abilities index and intellectual property rights protection using cross-national data. The findings suggest that cognitive abilities at a national level are significantly related with IPR protection. As expected intellectual capacity is positively and significantly related to the intellectual property rights and explain nearly 23% of cross national differences. In particular, a one standard deviation increase in the cognitive abilities index is associated with slightly less than a half standard deviation rise in IPR index. However, 65% of the effect of cognitive abilities on IPR protection is mediated by the democratic institutions.

Highlights

  • A ballooning body of cross country studies investigates the impact of cognitive abilities on economic growth and GDP per capita, as well as a number of other socio-economic factors (Salahodjaev, 2015a; Salahodjaev, 2015b; Whetzel & McDaniel, 2006; Ram, 2007)

  • Column 1 is a one variable specification where the intellectual property rights (IPR) index is regressed on the cognitive capital index only

  • As expected cognitive capital is positively and significantly related to the intellectual property rights and explains nearly 23% of cross-national differences

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Summary

Introduction

A ballooning body of cross country studies investigates the impact of cognitive abilities on economic growth and GDP per capita, as well as a number of other socio-economic factors (Salahodjaev, 2015a; Salahodjaev, 2015b; Whetzel & McDaniel, 2006; Ram, 2007). A number of follow up papers find that cognitive abilities are instrumental to antecedents of economic growth such as institutions (Kanyama, 2014) and credit sector size (Kodila-Tedika & Asongu, 2015) and corruption (Potrafke, 2012). Related studies find that cognitive abilities is an antecedent of quality of institutional arrangements, the link between cognitive abilities and protection of intellectual property has not been explored up to this date. Taking into account that intellectual property rights (IPR) are beneficial for economic growth (Thompson & Rushing, 1996; Adams, 2009), cognitive abilities may be indirectly related on economic growth via this channel. There are several channels: successfulness of economic policies, rule of law and soundness of institutions and human abilities

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