Effects Of Intellectual Property Rights Research Articles

Effects of intellectual property rights on innovation and economic activity: A non-linear perspective from Latin America

Intellectual property rights (IPRs) have a significant impact on facilitating the economic endeavors of countries. Nevertheless, there exists notable disparity among studies concerning the implications of IPRs within developing countries. Therefore, this study examines how stronger IPRs affect economic activity and moderate two important knowledge channels, domestic and foreign innovation activity. Using a sample of 18 Latin American countries from 2007 to 2018, we employed the Driscoll-Kraay robust standard errors, two-stage least squares (2SLS), and Generalized Method of Moments (GMM) to examine the effects of IPRs. Results confirm an inverted U-shaped relationship between IPRs and economic activity. Hence, the majority of Latin countries continue to vary in the factors of production that suport robust IPRs. Conversely, robust IPRs effectively improve the relation between domestic innovation and economic activity. Similarly, this influence holds true for foreign innovation as well. Based on this evidence, the research suggests implementing an optimal IPR policy.

Traditional Economists or Third Worldists? The Effect of Intellectual Property Rights on Economic Growth in Developing Countries

This study investigates the effect of Intellectual Property Rights (IPRs) on economic growth in 76 developing countries using panel data analysis over the period of 2008-2019. IPRs and the economic growth relationship have been discussed in the empirical literature. On the other hand, Third World Approach to International Law (TWAIL) scholars promote the idea that international law is a hegemonic tool of developed countries, and IPRs may be subjected to their arguments due to the Trade-Related Aspects of Intellectual Property Agreements (TRIPs). Results provide that IPRs positively and significantly affect economic growth in developing countries, whereas there is no U-Shaped relationship between them. The study suggests that IPRs protection should be highlighted in developing countries to achieve greater economic growth, and approves the perspective of traditional economists’ approach over TWAILers.

How does TRIPs compliance affect the economic growth of developing countries? Application of the Synthetic Control method

AbstractThis paper examines the effects of intellectual property rights (IPRs) on the economic growth of countries, with special attention to developing countries. We examine both the strength of countries' IPRs, as well as their compliance with the 1995 Agreement on Trade‐Related Aspects of Intellectual Property Rights (TRIPs) of the World Trade Organization. Our theoretical framework is a growth model which distinguishes capital as physical capital, human capital and intellectual property. Our methods include panel regression techniques, plus a novel Synthetic Control method. The latter is valuable for examining policy effects in research situations where data are limited to small sample sizes; and where reverse causality and heterogeneity are concerns. The Synthetic Control method allows us to assess the impact of TRIPs compliance on economic growth relative to a counterfactual of what would have occurred in the absence of compliance. The results show that while select developing countries experience growth benefits from complying with the TRIPs agreement, others do not, supporting the notion that there is a wide range of heterogeneity in the effects of IPR reforms on growth. These findings are robust when we account for marginal institutional changes in IPRs, enforcement of IPRs, and technological capacity in developing countries.

Do Foreign Direct Investment and Migration Influence the Sustainable Development of Outward Foreign Direct Investment? From the Perspective of Intellectual Property Rights Protection

In the current complicated and volatile international situation, maintaining the sustainable development of OFDI is critical to the economic recovery and growth of all countries. This study aims to examine the influence of foreign direct investment (FDI) and migration on the sustainable development of outward foreign direct investment (OFDI), the moderating effects of intellectual property rights (IPR) protection on the relationship between FDI and OFDI, and the relationship between migration and OFDI. Using the panel data of 85 countries from 2006 to 2018, we find that, globally, FDI positively affects OFDI and that the positive effect of FDI on OFDI is strengthened by the improvement of IPR protection. Migration negatively affects OFDI, and the influence of IPR protection on the relationship between migration and OFDI is not statistically significant. The study shows that in high-income countries, FDI positively affects OFDI, and IPR protection positively moderates the relationship between FDI and OFDI. For upper-middle-income countries, FDI positively affects OFDI, and IPR protection negatively moderates the relationship between FDI and OFDI. For lower-middle and low-income countries, the influence of FDI on OFDI is not statistically significant. Moreover, the influence of migration on OFDI is not significant in high- or upper-middle-income countries. For lower-middle and low-income countries, migration negatively affects OFDI, and IPR protection positively moderates the relationship between migration and OFDI.

Determinants of Renewable Energy Production: Do Intellectual Property Rights Matter?

Climate change and finite energy supply issues have received substantial public attention in recent times. It has been argued that a sustainable energy supply associated with the promotion of clean energy is an important engine of growth, which calls for sound protection to reinforce investments in the renewable energy market. This paper examined the effect of intellectual property rights (IPRs) on renewable energy production using the dynamic panel generalised method of moments (GMM) technique on data from 59 sample countries. The empirical results provided strong evidence that IPRs significantly drive renewable energy production. Greater protection rights motivate renewable energy firms to increase energy production from renewable resources. Our findings further revealed that stronger protection propagates the deployment of renewable energy technologies that ultimately promote renewable energy production.

Does innovation capacity reduce tax evasion? Moderating effect of intellectual property rights

The purpose of this study is two-fold: (i) investigate the association between innovation capacity and tax evasion; (ii) examine the moderating effect of intellectual property rights (IPR) on innovation capacity and tax evasion. Thus, the study provides policy guidance to reduce tax evasion. We collected data for 139 countries from several sources and merged them for the common period (2006–2015). The analytical tool (i.e., the linear mixed model methodology) enabled us to examine the topic under time-varying analysis. The fundamental results show that innovation capacity and IPR may be two significant mechanisms in alleviating tax evasion. We also found that IPR is a significant moderator between innovation capacity and tax evasion. However, this moderating effect is not homogeneous for all levels of innovation capacity—the moderating effect reduces and increases tax evasion at lower and higher levels, respectively. The Granger causality test confirmed the bidirectional relationship between innovation capacity and tax evasion. The robustness of the results was further confirmed by constructing two sub-samples—developed and developing countries. Finally, implications are suggested for policymaking to alleviate tax evasion behavior.

How do intellectual property rights and government support drive a firm's green innovation? The mediating role of open innovation

Although the existing literature on green innovation has little focus on the mediation role of open innovation, we aimed to explore how intellectual property rights and government support affect green innovation through open innovation. Drawing upon open innovation literature, this paper aims to investigate, at the firm level, the structural causality between internal and external resources and examine the role of open innovation on green innovation divided into green process and green product innovation. We attempt to suggest a structural model comparing open innovation's direct and mediating role using data from manufacturing sectors in South Korea from 2014 to 2016. The methodology was based on the partial least square structural equation method (PLS-SEM) with 1203 samples. The results revealed that a firm's intellectual property rights and government support significantly affect open innovation, green process innovation, and green product innovation while open innovation played a mediating role between each. Additionally, we provide a supplementary analysis using the sample-split test by comparing the sensitivity to partner selection and the multigroup test by firm size. This study proposes several implications emphasizing the mediating role of open innovation in enhancing green process innovation along with the direct and indirect effect of intellectual property rights and government support on green innovation.

Will Intellectual Property Rights Policy Increase Foreign Direct Investment and Promote Technological Innovation?

In this paper, we discuss the effects of intellectual property rights (IPRs) on FDI and indigenous innovation and the overall effects of IPR on the Southern and Northern countries. Our model predicts that tighter IPR is good for FDI and indigenous innovation; however, the effects vary according to the initial resource endowment such as skill level and absorptive capacity. By a game theory model, we also find that tighter IPR benefits both sides if the innovation is the common knowledge to both players, and it improves indigenous innovation and welfare in a short term, but they will emerge in the long run. We also discuss the further direction to an empirical study. Finally, we make the following conclusion: IPR is part of business environment, and tighter IPR in progress is good for boosting welfare of both sides. It is time to build a better environment for IPR, but the cost of patent enforcement policy and the trade barrier must be taken into account.

Growth and welfare effects of intellectual property rights when consumers differ in income

This paper analyzes how changing the expected length of intellectual property (IP) protection T affects economic growth and the welfare of rich and poor consumers. The analysis is based on a product-variety model with non-homothetic preferences and endogenous markups in which, in accordance with empirical evidence, rich households consume a larger variety of goods than poorer ones. It is shown that growth is independent of T when there is perfect equality and that T can only substantially affect growth when there is a sufficient degree of inequality. When there is inequality, an increase in T that is applied to both new and previously granted innovations increases growth. A reduction in T that affects only new, but not previously granted innovations, can increase growth if wealth inequality is sufficiently high. In the case where increasing T increases growth, poorer households prefer a shorter length of protection T than richer ones.

Patent protection, innovation, and technology transfer in a Schumpeterian economy

Abstract This paper analyzes the cross-country effects of intellectual property rights (IPR) protection on the relative wage, innovation, and technology transfer in a North-South quality-ladder model with innovative Northern R&D and adaptive Southern R&D. The degree of IPR protection in two countries differs in terms of patent breadth, which determines the markups of Northern firms and their Southern affiliates, respectively. In this model, stronger IPR protection in the South leads to a permanent decrease in the North-South wage gap, a temporary increase in the Northern innovation rate, and a permanent increase in technology transfer. By contrast, stronger IPR protection in the North leads to a permanent increase in the North-South wage gap, ambiguous effects on the Northern innovation rate, and a permanent decrease in technology transfer. Finally, we perform a quantitative analysis by calibrating the model to the US-China data, and the numerical results support these policy implications in addition to a welfare implication such that strengthening patent protection in one country leads to sizable welfare improvements in both countries.

A Two-Staged Approach to Technology Entrepreneurship: Differential Effects of Intellectual Property Rights

A Two-Staged Approach to Technology Entrepreneurship: Differential Effects of Intellectual Property Rights

Revisiting incremental product innovations in the food-manufacturing industry: an empirical study on the effect of intellectual property rights

The highly competitive and mature food industry has long been process innovation-oriented while largely neglecting product/technological innovation. However, recent innovation debates have raised two issues. First, imitations of product innovations likely underestimate the value of innovation in this industry; second, exaggerations of new product development neglect incremental product innovations, which facilitate branding. Using intellectual property rights data as indicators of exclusive innovation outcomes, this study empirically examined these issues. The distinction of consumer communication channel-related designs from other industrial designs utilizing the advantage of the simple structure of foods has realized highly fitted proxies of distinctive innovation activities. Investigating the firm performance of 192 Japanese food manufactures between 2009 and 2013 revealed the dominance of incremental innovations in product packaging over other exclusive innovations. This study provides practical insights regarding innovations for the industry and evidence of the effectiveness of consumer communication-related designs of patents, especially as novel innovation proxies.

Benefits and effects of intellectual property rights

Intellectual property rights (IPRs) are considered to be a severe tool to protect an enterprise's product, process or service. However, solely the protection does not necessarily lead to a cash flow, which can be appropriated by the owner of the respective protection right. The paper aims to clarify how protection instruments may affect the appropriation of innovation revenues and thereby provides insights into the beneficial effects of IPRs for enterprises, if they are applied adequately. Furthermore, the aim is to analyse the multifunctionality of IPRs and their various effects as tools for appropriating innovation revenues. The paper shows that the ownership of IPRs does not lead to an automatic increase of revenues. It is rather the in-depth understanding of the different effects of IPRs, which are not restricted to proprietary protective measures, to enable enterprises to optimally appropriate innovation revenues.

Non-Linear Effects of Intellectual Property Rights on Technological Innovation: Evidence from Emerging and Developing Countries

The protection of Intellectual Property Rights (IPR) is a key determinant of innovation. Following the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), all member states of the World Trade Organization are called upon to introduce high intellectual property rights standards. Hence the importance of the issue relative to IPR. Recent studies suggest that IPR protection stimulates innovation only under certain conditions. In this study, we suppose that IPR have a positive impact on technological innovation only in countries with high levels of economic development. The objective of this study is to examine the relationship between intellectual property rights, economic development and technological innovation in the context of emerging and developing countries. To measure innovation, we use patent applications filed by residents of a given country with the United States Patent and Trademark Office. IPR is measured by the Ginarte and Park index. Panel Threshold Regression is applied to data of 55 emerging and developing countries for the period 1980-2009. The estimation results provide evidence for the existence of nonlinear relationship depending on economic development level. We conclude that « one size does not fit all

Benefits and effects of intellectual property rights

Intellectual property rights (IPRs) are considered to be a severe tool to protect an enterprise's product, process or service. However, solely the protection does not necessarily lead to a cash flow, which can be appropriated by the owner of the respective protection right. The paper aims to clarify how protection instruments may affect the appropriation of innovation revenues and thereby provides insights into the beneficial effects of IPRs for enterprises, if they are applied adequately. Furthermore, the aim is to analyse the multifunctionality of IPRs and their various effects as tools for appropriating innovation revenues. The paper shows that the ownership of IPRs does not lead to an automatic increase of revenues. It is rather the in-depth understanding of the different effects of IPRs, which are not restricted to proprietary protective measures, to enable enterprises to optimally appropriate innovation revenues.

Ekonomik Büyüme Üzerinde Fikri Mülkiyet Haklarının Etkisi: Ampirik Bir İnceleme

Bu araştırmanın amacı, fikri mülkiyet haklarının ekonomik büyüme üzerindeki etkisini incelemektir. Bu amaç doğrultusunda geliştirilen hipotez panel veri analiz yöntemiyle test edilmiştir. Araştırma, 35 gelişmiş-54 gelişmekte olan ülkeyi ve 1996-2010 dönemini içermektedir. Araştırmanın analiz bulgularına göre; fikri mülkiyet haklarının ekonomik büyüme üzerindeki etkisi, ülkelerin gelişmişlik düzeyine göre farklılık göstermektedir. Gelişmiş ülkelerde fikri mülkiyet hakları ekonomik büyüme üzerinde pozitif ve anlamlı bir etkiye sahipken, gelişmekte olan ülkelerde fikri mülkiyet haklarının ekonomik büyüme üzerinde istatistiki olarak anlamlı herhangi bir etkisi tespit edilememiştir. Bu sonuçlar, uluslararası anlaşma ve sözleşmelerle ülkelerin fikri mülkiyet haklarını belli bir standart içerisinde uyumlaştırırken, ekonomik büyümeye etkilerinin farklılaştırdığını göstermesi açısından son derece önemlidir.

Effects of patents on the transition from stagnation to growth

This study provides a growth-theoretic analysis of the effects of intellectual property rights on the take-off of an economy from an era of stagnation to a state of sustained economic growth. We incorporate patent protection into a Schumpeterian growth model in which take-off occurs when the population size crosses an endogenous threshold. We find that strengthening patent protection has contrasting effects on economic growth at different stages of development. Specifically, it leads to an earlier take-off but also reduces economic growth in the long run.

Intellectual property rights and global imitation chains: the north–south–east model

This study investigates the effects of intellectual property rights (IPR) protection on economies by proposing a three-pole global economy model. The main proposition of the study is that the classical two-pole approach (north–south) does not reflect the technological heterogeneity and conflicts within the developing world. Therefore, a three-pole world economy model which consists of the following regions has been designed; the north which innovates the northern products, the east which innovates the eastern products and also tries to imitate the northern products, and lastly, the south which tries to imitate both the eastern products and the northern products that have been already imitated by the east. Thus, the model suggests a world system depending on global imitation chains. The numeric simulation results reveal firstly, the northern region benefits from tighter IPR policies in any case; secondly, stronger protection of IPR certainly exerts negative effects in the south while it brings benefits the eastern region in a way that highlights the main contribution of the paper.

The (Anti-)Competitive Effect of Intellectual Property Rights

We test whether intellectual property rights foster or hinder innovation by estimating IV structural equations for a large sample of Swiss firms. We find that better appropriability conditions at the industry level raise the number of competitors. However, conditional on the given industry structure, individual firms face fewer competitors, if they actually use intellectual property rights. The further impact of fewer competitors is to raise R&D, when initial competition is strong, but to reduce it, when initial competition is weak (inverted U).

Overlap in external technology search locations and the breadth of IPR assets: lessons from the Security Software Industry

ABSTRACTThis study examines the effect of intellectual property rights (IPR) on firms’ geographic overlap strategy of external technology search (ETS) compared to rivals. I reveal that firms are able to realise less intensity of geographic overlap in ETS locations compared to competitors and that this outcome is a function of the breadth of their upstream (generality of patents) and downstream (diversification of trademarks) IPR tools. Accordingly, I conclude that both covariates influence the spatial isolation of ETS vis-à-vis competitors. The effect of generality of patents on isolation, however, is more pronounced in comparison with diversification of trademarks at strategic technology alliances, meanwhile the reverse scenario is true at acquisitions. I also reveal relevant findings about resource-rich organisations defined as those with the broadest portfolio of such up- and downstream IPR assets within the industry.