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Bidding for brains: Intellectual property rights and the international migration of knowledge workers

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  • McAusland, Carol
  • Kuhn, Peter

Abstract

We introduce international mobility of knowledge workers into a model of Nash equilibrium IPR policy choice among countries. We show that governments have incentives to use IPRs in a bidding war for global talent, resulting in Nash equilibrium IPRs that can be too high, rather than too low, from a global welfare perspective. These incentives become stronger as developing countries grow in size and wealth, thus allowing them to prevent the 'poaching' of their 'brains' by larger, wealthier markets.

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  • McAusland, Carol & Kuhn, Peter, 2011. "Bidding for brains: Intellectual property rights and the international migration of knowledge workers," Journal of Development Economics, Elsevier, vol. 95(1), pages 77-87, May.
    • Handle: RePEc:eee:deveco:v:95:y:2011:i:1:p:77-87
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    Cited by:

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    2. Yang, Xuebing, 2013. "Horizontal inventive step and international protection of intellectual property," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 338-355.
    3. Alireza Naghavi & Chiara Strozzi, 2011. "Intellectual Property Rights, Migration, and Diaspora," Working Papers 2011.60, Fondazione Eni Enrico Mattei.
    4. Alireza Naghavi & Chiara Strozzi, "undated". "Intellectual Property Rights and Diaspora Knowledge Networks," Development Working Papers 380, Centro Studi Luca d'Agliano, University of Milano.
    5. Bojan Ćudić, 2021. "Factors impacting patent applications in European countries," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 573-589, June.
    6. Fabio Montobbio & Annalisa Primi & Valerio Sterzi, 2015. "IPRs and International Knowledge Flows: Evidence from Six Large Emerging Countries," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(2), pages 187-204, April.
    7. Frédéric Docquier & Hillel Rapoport, 2012. "Globalization, Brain Drain, and Development," Journal of Economic Literature, American Economic Association, vol. 50(3), pages 681-730, September.
    8. Naghavi, Alireza & Strozzi, Chiara, 2015. "Intellectual property rights, diasporas, and domestic innovation," Journal of International Economics, Elsevier, vol. 96(1), pages 150-161.
    9. Zhang, Jingjing & Leoncini, Riccardo & Tsai, Yingyi, 2018. "Intellectual property rights protection, labour mobility and wage inequality," Economic Modelling, Elsevier, vol. 70(C), pages 239-244.
    10. Yan Chen & Xiaohong Chen & Hongshan Ai & Xiaoqing Tan, 2022. "Temperature and Migration Intention: Evidence from the Unified National Graduate Entrance Examination in China," IJERPH, MDPI, vol. 19(16), pages 1-23, August.
    11. Zachary Cohle, 2019. "Global Innovative R&D Offshoring with Heterogeneous Labor: The Role of IPR‐Protection on Technology Transfer and the Brain Drain Effect," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 691-725, October.
    12. Siqi Zheng & Xiaonan Zhang & Weizeng Sun & Chengtao Lin, 2019. "Air pollution and elite college graduates’ job location choice: evidence from China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(2), pages 295-316, October.
    13. Olena Ivus & Alireza Naghavi & Larry D. Qiu, 2023. "Migration and Imitation," Economica, London School of Economics and Political Science, vol. 90(357), pages 212-239, January.
    14. Norbäck, Pehr-Johan & Olsson, Martin & Persson, Lars, 2016. "Talent Development and Labour Market Integration: The Case of EU Football," Working Paper Series 1126, Research Institute of Industrial Economics, revised 14 Mar 2018.
    15. TOMOHARA Akinori, 2017. "Do Migrant and Business Networks Promote International Royalty Receipts?," Discussion papers 17006, Research Institute of Economy, Trade and Industry (RIETI).
    16. Alireza Naghavi & Chiara Strozzi, "undated". "Can Intellectual Property Rights Protection Generate Brain Gain from International Migration?," Development Working Papers 374, Centro Studi Luca d'Agliano, University of Milano.
    17. Huiying Zhang & Yikang Liu, 2022. "Do Foreign Direct Investment and Migration Influence the Sustainable Development of Outward Foreign Direct Investment? From the Perspective of Intellectual Property Rights Protection," Sustainability, MDPI, vol. 14(9), pages 1-18, April.
    18. Pehr‐Johan Norbäck & Martin Olsson & Lars Persson, 2021. "Talent development and labour market integration in European football," The World Economy, Wiley Blackwell, vol. 44(2), pages 367-408, February.
    19. Streltsova, E., 2022. "Global flows of technological knowledge: The position of Russia," Journal of the New Economic Association, New Economic Association, vol. 57(5), pages 39-54.

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    More about this item

    Keywords

    Intellectual property rights Development Brain drain International labor migration;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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