Level Of Intellectual Property Rights Protection Research Articles

Effects of technology spillover on CO2 emissions in China: A threshold analysis

Technology spillover is crucial to achieving economic development while also reducing CO2 emissions. The success of diffusion depends critically upon advanced intellectual property rights (IPR) protection and the level of infrastructure. Several studies have discussed the relationship between technology spillover and CO2 emissions. However, very few studies have addressed the impacts of socio-economic factors, particularly IPR protection and transportation infrastructure (TI) (the two concepts that are directly related to technology spillover), on this relationship. Therefore, this study used an extended Environmental Kuznets Curve (EKC) model to explore the relationship between technology spillover and CO2 emissions in China from 1997 to 2018. The study accounted for two threshold variables (IPR protection and TI) in a threshold model to explore the nonlinear effect of technology spillover on CO2 emissions. The findings revealed that: (1) when the IPR protection value was below 8.169, different forms of technology spillover had an optimal effect on CO2 emission reduction; (2) the scale of TI construction should be moderate and below the threshold value; otherwise, greater environmental pressure would occur; and (3) threshold points varied geographically. The results indicated that the level of IPR protection and TI should be adapted to the regional development characteristics to promote economic development and minimize environmental impacts.

Trade liberalization, absorptive capacity and the protection of intellectual property rights

AbstractWe examine how trade liberalization affects South's incentive to protect intellectual property rights (IPR) in a North–South duopoly model where a low‐cost North firm competes with a high‐cost South firm in the South market. The North firm serves the South market through either exports or foreign direct investment (FDI). The extent of effective cost difference between North and South depends on South's imitation, which in turn depends on South's IPR protection and absorptive capacity and North firm's location choice, all of which are endogenously determined in our model. For a given level of IPR protection, South's absorptive capacity under exports may be greater than under FDI. Even though innovation is exogenous to the model (and hence unaffected by South's IPR policy), strengthening IPR protection in South can improve its welfare. The relationship between trade costs and the degree of IPR protection that maximizes South welfare is non‐monotone. In particular, South has an incentive to protect IPR only when trade costs are moderate. When masking technology or licensing is incorporated into the model, however, some protection of IPR may be optimal for South even if the trade costs are not moderate.

How Does Stronger Protection of Intellectual Property Rights Affect National Pharmaceutical Expenditure? An Analysis of OECD Countries

Intellectual property rights (IPR) protection for pharmaceuticals has been comprehensive and strict since the establishment of the World Trade Organization in 1995 and the subsequent implementation of the TRIPS Agreement. This study investigated the relationship between the level of IPR and national pharmaceutical expenditure using panel data of 22 OECD countries from 1970 to 2009. The patent index was used to measure the level of national protection for IPR along with other covariates: GDP per capita, the percentage of population aged over 65, number of doctors, proportion of public financing among total pharmaceutical expenditure, under-5 mortality, price index, and period indicators. The regression analysis results showed that the level of IPR protection was significantly correlated with pharmaceutical spending even after controlling for various factors that affect pharmaceutical expenditure. The results were consistent in OLS regression and GLS regression. However, the effect of IPR was stronger and more significant in countries with a relatively small-sized pharmaceutical market than in those with big market. Many developed countries incur a financial burden due to rapidly growing pharmaceutical expenditure; therefore, the results of this study present the possibility that stronger IPR would produce welfare loss in developed countries.

Intellectual property rights, FDI, and technological development

ABSTRACTThis paper presents two simultaneous trade-offs faced by a developing country in protecting intellectual property rights (IPRs), namely (1) between attracting foreign direct investment and deterring international technology spillovers, and (2) between encouraging domestic innovation and suppressing technology diffusion. The optimal level of IPR protection depends on the technological capability of the host country. In less developed countries, IPRs should be just strong enough to induce FDI since international technology spillovers are the dominant source of technological development. A stronger level of IPR protection is instead recommended for more advanced emerging economies as a tool to exploit the potential of their domestic innovators. The results cast doubt on the adequacy of globally harmonized IPR standards that do not consider the level of development.

Is trade in electrical and electronic products sensitive to IPR protection? Evidence from China’s exports

ABSTRACTThis article attempts to provide the first empirical evidence on the effect of intellectual property rights (IPRs) on China’s export of electrical and electronic products. It adopts a gravity model for unbalanced panel data of China’s 146 important trading partners over the period of 2002–2012. To eliminate the effects of FDI in determining the linkage between IPR and exports, the panel excludes the destination countries and territories that invest in China. The results reveal that the level of IPR protection in destination countries has a positive impact on China’s flow of exports. Further analysis on data disaggregated by IPR score demonstrates that a higher level of IPR protection in destination countries and territories is positively linked with China’s exports of these items in each of the IPR protection clusters and indicates a strong market power effect by the interplay between R&D expenditure and IPR in the destinations. Finally, both market power and market expansion effects are found to be prevalent in the destinations, as implied by the coefficient of IPR protection disaggregated by income level of China’s export destinations. The results generally resemble those in the literature that describe the linkage between IPR protection and trade flows.

Clean and Dirty International Technology Diffusion

This paper investigates the role of Intellectual Property Rights (IPR) protection and Environmental Policies (EPs) on clean (renewable) and dirty (fossil-based) technology diffusion from top-innovators. IPR protection and EPs are extensively debated policy tools, as IPR protection addresses knowledge market failure, while EPs respond to pressing local and global environmental externalities. A model of monopolistic competition inspired by the recent trade literature shows that the profits associated with exporting a blueprint are a function of the quality of the idea and of market and institutional characteristics of the receiving country. We test the empirical implications of our model using patent data in renewable and fossil efficient power technologies for 13 top innovating countries and 40 patenting authorities. We improve on previous contributions by accounting for unobserved heterogeneity and for the endogeneity of policy proxies through a Generalized Method of Moment estimator. We show that knowledge transfer through patent duplication increases with the level of IPR protection, but with slight diminishing marginal returns. The effect is stronger for clean technologies, which are arguably less mature and more sensitive to uncertainty. Commitment to EPs also increases the incentives for patent duplication. The magnitude of the effect is conditional on the nature of the technology and on the specific policy instrument.

Intellectual Property Rights, Migration, and Diaspora

In this paper we study theoretically and empirically the role of the interaction between skilled migration and intellectual property rights (IPRs) protection in determining innovation in developing countries (South). We show that although emigration from the South may directly result in the well-known concept of brain drain, it also causes a brain gain effect, the extent of which depends on the level of IPRs protection in the sending country. We argue this to come from a diaspora channel through which the knowledge acquired by emigrants abroad can flow back to the South and enhance the skills of the remaining workers there. By increasing the size of the innovation sector and the skill-intensity of emigration, IPRs protection makes it more likely for diaspora gains to dominate, thus facilitating a potential net brain gain. Our main theoretical insights are then tested empirically using a panel dataset of emerging and developing countries. The findings reveal a positive correlation between emigration and innovation in the presence of strong IPRs protection.

Intellectual Property Rights, Migration and Diaspora

In this paper we study theoretically and empirically the role of the interaction between skilled migration and intellectual property rights (IPRs) protection in determining innovation in developing countries (South). We show that although emigration from the South may directly result in the well-known concept of brain drain, it also causes a brain gain effect, the extent of which depends on the level of IPRs protection in the sending country. We argue this to come from a diaspora channel through which the knowledge acquired by emigrants abroad can flow back to the South and enhance the skills of the remaining workers there. By increasing the size of the innovation sector and the skill-intensity of emigration, IPRs protection makes it more likely for diaspora gains to dominate, thus facilitating a potential net brain gain. Our main theoretical insights are then tested empirically using a panel dataset of emerging and developing countries. The findings reveal a positive correlation between emigration and innovation in the presence of strong IPRs protection.