Impact Of Intellectual Property Rights Research Articles

Relationship-Specifiic Investments and Intellectual Property Rights Enforcement with Heterogeneous Suppliers

This paper examines the impact of intellectual property rights (IPR) enforcement on multinationals' choice of input suppliers and industry profits in a host economy. The framework consists of suppliers with heterogeneous capabilities who must engage in a relation-specific investment to customize intermediate inputs upon a transfer payment by final producers. An outsourcing contract with better technologically-endowed suppliers requires a lower transfer and generates a higher surplus. Stronger IPR enforcement leads firms to self-select into better quality suppliers on average by reducing their outside option. Weak legal institutions instead make it possible for a larger range of suppliers, including the less capable ones, to form partnerships by granting them a larger outside option. A better IPR environment is more likely to harm lagging countries where the technology distribution is characterized by less capable suppliers.

Relationship-Specific Investments and Intellectual Property Rights Enforcement with Heterogeneous Suppliers

This paper examines the impact of intellectual property rights (IPR) enforcement on multinationals' choice of input suppliers and industry profits in a host economy. The framework consists of suppli-ers with heterogeneous capabilities who must engage in a relation-specific investment to customize intermediate inputs upon a transfer payment by final producers. An outsourcing contract with better technologically-endowed suppliers requires a lower transfer and generates a higher surplus. Stronger IPR enforcement leads firms to self-select into better quality suppliers on average by reducing their outside option. Weak legal institutions instead make it possible for a larger range of suppliers, including the less capable ones, to form partnerships by granting them a larger outside option. A better IPR environment is more likely to harm lagging countries where the technology distribution is characterized by less capable suppliers.

How India Can Attract More Foreign Direct Investment, Create Jobs and Increase GDP: The Benefits of Respecting the Intellectual Property Rights of Foreign Pharmaceutical Producers

This study examines the economic impact of India’s current approach to intellectual property (IP) rights, as it affects pharmaceutical products and foreign direct investment (FDI). We review the literature on the economic effects of FDI and found that across most developing nations, FDI has strong, positive effects on a country’s growth, productivity and incomes. Next, we focus on the impact of IP rights and enforcement and pharmaceutical firms. Using the Ginarte-Park (G-P) index of nations with regard to IP rights and enforcement, we found a strong relationship between how much FDI a nation attracts and the strength of its IP regime, and an even stronger relationship for pharmaceutical FDI. Next, we analyzed the history of improvements in IP rights in India and found that flows of pharmaceutical FDI to India were highly responsive to those improvements and to setbacks in those improvements. Next, we estimated the impact of improvements in IP rights and enforcement in India. We found that if India adopted an IP regime comparable to China, annual FDI flows in pharmaceuticals to India could increase by as much as 33 percent; and if it adopted a system of IP rights and enforcement comparable to the United States, those FDI flows could rise by as much as an estimated 83 percent per-year.We also examine the links between these FDI flows and the RD and this increased access to new pharmaceutical treatments could raise the average life expectancy of working-age Indians by four weeks. We estimate the long-term economic benefits of a four week increase in life expectancy at roughly $32 billion. Similarly, if India adopted an IP regime comparable to the United States, the increased access to new pharmaceuticals would extend the average life expectancy of working-age Indians by an estimated 10 weeks, with long-term benefits totaling some $80 billion. Finally, we found that greater access to new pharmaceuticals could lower costs for other forms of medical treatment, lower government subsidies for medical care, and lower income losses from illnesses. We find that those savings could range from $5.2 billion per-year to $19.2 billion per-year.

Can Intellectual Property Rights Impact Directly on Productivity: A Case Study in Manufacturing Industries

This paper, relies on a theoretical and conceptual framework of labour productivity and Intellectual Property Rights (IPRs). In order to support the theoretical insights a regression method was used to determine whether there exists a direct impact of IPRs on output per capita in various OECD countries. In our estimations we surveyed a specific technology-intensive approach in four different clusters of manufacturing industries. All in all, our results yield a valid positive relationship between patents, trademarks and productivity growth. In this sense, the better valorisation of patents must be considered in a global context to facilitate SMEs’ access to the benefits of markets.

Foreign Direct Investment, Intellectual Property Rights, and Productivity Growth

Using panel data for 57 countries over the period of 1995–2012, this paper investigates the impact of intellectual property rights (IPR) processes on productivity growth. The IPR processes are decomposed into three stages — innovation process, commercialization process, and protection process. The paper finds that better IPR protection is directly associated with productivity improvements only in developed economies. In addition, the contribution of IPR processes on growth through foreign direct investment (FDI) appears to be quite limited. Only inward FDI in developed countries which creates better innovative capability leads to higher growth. In connection with outward FDI, only the increase in IPR protection and commercialization are proven to improve productivity in the case of developing countries, particularly when the country acts as the investing country.

Exploring the Endogenous Relationship between Intellectual Property Rights Protection and Economic Growth

This paper studies the impact of intellectual property rights (IPR) on economic growth as an endogenous factor. Most economic growth theories emphasize on enhancing IPR protection in order to encourage innovation, which stimulates economic growth, but some empirical findings also show that there exists a negative relationship between IPR protection and GDP growth rate. This paper uses the seemingly unrelated regression (SUR) approach and simultaneous equations to examine the endogenous relationship between IPR and economic growth. The empirical analysis implements a panel of data for 46 countries during the period of 2000-2007. This paper finds bilateral negative endogeneity for IPR protection and economic growth. Moreover, population growth, mobile cellular subscription, and high-tech exports significantly promote economic growth. Internet use and economic freedom significantly induce higher IPR protection.

Postkapitalizmy czy kapitalizm 2.0? Pracownicy wiedzy w kapitalizmie kognitywnym

The article aims to answer the question of whether the widely discussed dissemination of knowledge-based work has the potential to revolutionize modern economic relations. The argument makes reference to three key issues: 1)the number of knowledge workers, 2) their theoretical and actual diversity, and 3) the impact of intellectual property rights on potential changes hiding within the growing importance of knowledge work processes. In conclusion it is argued that any revolutionary change must involve decommodification of the workforce involved in the production of both material and intangible/immaterial goods.

The role of foreign direct investment in the relation between intellectual property rights and growth

The theory predicts that the welfare implications of intellectual property rights (IPR) reform are ambiguous, and depend on the extent of foreign direct investment (FDI) in the IPR-reforming country. However, previous research finds that stricter IPR increase development, especially among multinational firms in technology-intensive industries. I examine whether the impact of IPR on growth is different depending on a level of FDI, because previous research either looked at a few episodes of IPR reforms, or a specific source or a recipient of FDI, thus potentially overlooking the global effect. Using dynamic panel data techniques and a sample of 103 countries over 1970-2009, I find that although FDI and IPR have positive effects on growth for most of the countries, stronger IPR mitigates the growth effect of FDI for developing countries. Moreover, at the highest levels of FDI, lax IPR increase growth. The effect works through capital accumulation and TFP improvements.

The Legal Challenges Faced by the Pharmaceutical Industry Particularly in India: An Analysis of the Compulsory Licensing System and Section 3(D) of the Patents Amendment Act 2005

The impact of intellectual property rights in particular patent relating to public health has posed number of challenges faced by developing countries who are members of WTO. This paper will examine impact of TRIPS Agreement in relation to developing countries in general with specification made to India. However significant changes brought about by the TRIPS flexibilities in particular usage of compulsory licensing have to a certain extent benefited the developing countries. The TRIPS flexibilities by way of amendment have helped countries that do not have manufacturing capacities to import medicines. Importantly this paper will examine the impact of the TRIPS Agreement on Indian generic pharmaceutical industry and the legal challenges faced by Indian pharmaceutical industry after implementation of product patent regime effective from 1 January 2005. The Patent Amendment Act 2005 will be looked into especially on the controversy in respect of Section 3(d) of Patent Amendment Act 2005 on the requirement of patentability and comparisons with other jurisdictions on validity of second medical use. The section 84 of the Patent Act 1970 which provides the grounds to invoke TRIPS flexibilities in respect of compulsory licensing will be analysed as to whether Indian government has applied restrictive or broad approach in relation to compulsory licensing in the view of the recent case of NatcoPharma Limited and Bayer Corporation which has brought significant attention on the issue of compatibility with the TRIPS Agreement. India needs to achieve legal certainty by complying with the TRIPS Agreement before adopting those provisions into their patent law.

Do stronger intellectual property rights promote seed exchange: evidence from U.S. seed exports?

AbstractWith increased private investment in crop breeding research in the developed world, intellectual property rights have gained importance in seed sector. Trade Related Aspects of Intellectual Property Rights (TRIPS)‐plus provisions included in recent free trade agreements between the developed and developing countries show a tendency of the developed world to impose their high standards for protection of plant intellectual property on the developing world. While stronger intellectual property rights can increase international exchange in seed, market power effect can lead to a reduction in exports of seed to foreign markets. This article estimates the impact of intellectual property rights on U.S. seed exports. The estimation is performed at a crop level using Heckman selection model. The results reveal that the impact of intellectual property rights varies across different types of crops—open‐pollinated, genetically modified, and hybrid crops. While TRIPS provisions are important to facilitate transfer of genetically modified crops, they play a minor role for open‐pollinated and hybrid crops. The results also show that plant breeders’ rights envisioned by the UPOV system can be important to promote seed exchange when proper mechanisms are put in place to enforce these rights.

The Response of Inventors to IPR Reform

We analyze the impact of intellectual property rights (IPR) reform on patenting in emerging economies. Building on the institutional view of the firm, we argue that IPR reform has a positive impact on both domestic and foreign patent applications because it increases the transparency, credibility, consistency, and ease of patenting for both types of inventors. However, we propose that a democratic political system reinforces the effect of IPR reform on foreign but not domestic patent applications, whereas a strong legal system heightens the impact of IPR reform on domestic but not foreign patent applications. The analyses of a panel of 501 patent applications in 18 countries from 1967-2009 provide support for these arguments.

Intellectual property rights and the margins of international trade

Economic theory indicates some ambiguity in the relationship between intellectual property rights (IPRs) and trade. Here, we extend the empirical literature that attempts to resolve this ambiguity by examining how IPRs affect trade along both the intensive – increasing volume of existing goods – and extensive – increasing variety of goods – margins oftrade. Our main results suggest that IPRs have a positive impact on imports, which is driven by a positive effect on the extensive margin and a negative impact on the intensive margin. Splitting countries according to their level of development, market size and imitative ability, we find that the positive impact of IPRs is strongest in less-developed countries, as well as larger countries and those with a higher degree of imitative ability.

THE IMPACT OF TRIPS AGREEMENT ON ACCESS TO MEDICINES IN DEVELOPING COUNTRIES: LEGAL CHALLENGES FACED BY THE PHARMACEUTICAL INDUSTRY PARTICULARLY IN INDIA

The impact of intellectual property rights in particular patent relating to public health has posed numerous challenges faced by developing countries who are members of World Trade Organisation (WTO). This paper examines the impact of TRIPS Agreement (Trade Related Intellectual Property Rights) in relation to developing countries in general with specification made to India. Significant changes brought about by the TRIPS flexibilities in particular usage of compulsory licensing and Bolar provision have to a certain extent benefited the developing countries in the field of public health during national emergency. The TRIPS flexibilities by way of amendment have helped countries that (do not possess manufacturing capacities) to import medicines. Some developing countries even utilised TRIPS flexibilities in an aggressive manner to enforce their right to have access to medicines from other countries for the benefit of their citizens. Further, TRIPs flexibilities have helped developing countries to manufacture generic products to make it affordable to the people. This paper specifically examines the impact of the TRIPS Agreement on Indian generic pharmaceutical industry and the legal challenges faced by Indian pharmaceutical industry after the implementation of product patent regime effective from 1 January 2005. The Patent Amendment Act 2005(India) will be looked into especially on the controversy in respect of Section 3(d) of the Patent Amendment Act 2005(India) on the requirement of patentability. The new Section 92A of the Patent Amendment Act 2005(India) on the grounds to invoke compulsory licensing will be analysed to see whether Indian government has applied restrictive or broad approach, as compulsory licensing is certainly an important legal

North–South models of intellectual property rights: an empirical critique

Do Southern intellectual property rights (IPRs) affect Northern innovation? There is much theoretical debate on the impact of IPRs in the South on the incentives of Northern firms to innovate and transfer technologies to the South. While empirical research exists on the effects of Southern IPRs on Northern technology transfers, empirical evidence on the effects of Southern IPRs on Northern innovation is absent. This paper seeks to fill that gap. Using a comprehensive micro-database of US multinational firms and their foreign affiliates in developed countries, this study finds that patent protection in the South has statistically insignificant effects on the research and development of these firms. Rather, the patent regimes of developed countries matter significantly to the R&D of these firms. Developing countries constitute a relatively small share of the world market so that variations in the patent rights of developing economies have contributed marginally to Northern incentives for R&D.

Climate Change and Intellectual Property Rights for New Plant Varieties

Debates between developing and developed countries over access to technology to mitigate or adapt to climate change tend to overlook the importance of biotechnology. There has been little comparative analysis of competing IPR regimes for biotechnology. Moreover, the role that compulsory licensing might play in international biotechnology transfer has not been explored in depth. This article focuses on the role of intellectual property rights (IPRs) in the international transfer of new plant varieties. Climate change will increase the importance of the development of new plant varieties (primarily genetically modified ones) that can adapt to changing (and more extreme) climactic conditions. We begin our analysis by examining the science and impact of climate change. We then provide an overview of the debates regarding IPRs and international technology transfer. We argue that the impact of IPRs on international technology transfer varies from one area of technology to the next. IPRs represent a more significant obstacle to international biotechnology transfer than they do in other technologies. Subsistence farming increases developing countries’ vulnerability to climate change and their need to access the biotechnology on favorable terms. In this regard, the issues that arise with respect to biotechnology are closer to those regarding pharmaceuticals than to those regarding clean energy technology. We therefore compare the economics of IPRs for biotechnology and pharmaceuticals. We then provide a comparative analysis of IPRs for biotechnology in the WTO TRIPS Agreement, the UPOV Convention and the Convention on Biological Diversity. This analysis sheds light on the policy options available to developing countries under the current international legal regime.

Self-employment: the role of intellectual property right laws

Little is known about the impact of intellectual property rights (IPRs) on typically imitative self-employment. IPR laws have contrasting dual innovation creation and access effects on self-employment activity. The first effect is positive where strong IPR laws promote innovation and so create new opportunities for self-employment. The second effect is negative where strong IPR laws restrict access to innovation and technology used as inputs to self-employed businesses. Using a 33-country dataset over the period 1995–2000, we estimate the impact of IPR laws on self-employment, helping to fill the vacuum of empirical evidence that has plagued policy decision making in this area. We find that patent activity has a negative effect on self-employment. However, overall, we find that more extensive and strong IPR laws have a net positive effect on self-employment activity.

Intellectual Property Rights, Investment Climate and FDI in Developing Countries

What is the impact of intellectual property rights (IPR) protection on foreign direct investment (FDI)? Has the coming into effect of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) had any impact on FDI inflows in developing countries? This paper answers these questions by the use of panel data for a cross – section of 75 developing countries over a period of 19 years (1985 – 2003). The results of the study indicate that: 1) strengthening IPR has a positive effect on FDI; 2) the impact of patent protection on FDI after the TRIPS agreement is far and above that of the pre – TRIPS era; 3) the degree of openness, growth rate of the economy and investment are also key determinants of FDI. The findings of the study suggest that strengthening IPR is only one component of the many factors needed to maximize the potential of developing countries to attract FDI.

Intellectual property rights and private foreign direct investment in Sub-Saharan Africa

This article examines the impact of Intellectual Property Rights (IPRs) on private foreign direct investments (PFDI) for a cross-section of Sub- Saharan African (SSA) countries. The results of the study indicate that: (1) strengthening IPRs has a significant positive effect on PFDI, however, beyond a certain optimal level, the effect becomes negative; (2) the trade related agreement on intellectual property has had positive but insignificant effect on PFDI; (3) investors are sensitive to the investment climate of the countries in which they invest; and (4) inflation rate is negatively correlated with PFDI inflows.

Property rights, firm boundaries, and the republic of science—A note on Ashish Arora and Robert Merges

In the past few years, there has been a proliferation of literature devoted to the study of the economic impact of intellectual property rights (IPRs), to the point that any comprehensive review becomes difficult1. However, the above scientific debate has principally revolved around the role of IPRs as an incentive to create and to invent, building upon the central idea of the economic theory of intellectual property that attributing exclusive rights to creators and inventors remedies an underproduction of market-oriented information and so averts a market failure. Such an approach is informed by the Coasean reference model in which the allocation of property rights provides an efficient solution to the problem of public goods and externalities (Coase, 1960). Nevertheless, the prevalence of the above view has meant that many other scientific avenues of economic theory under which intellectual property could be gainfully studied have been largely neglected.

Who owns scientific data? The impact of intellectual property rights on the scientific publication chain

ABSTRACTIntellectual property rights have become increasingly important in scientific research. As the legal regime has been tightened and attitudes of funders, employers and researchers have changed, serious challenges are emerging to the free flow of ideas and information on which the scientific enterprise rests. It is important that individual scientists are aware of their rights and convinced to use them in the public good.