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Intellectual property rights protection and total factor productivity

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  • Su, Zhongfeng
  • Wang, Chenfeng
  • Peng, Mike W.

Abstract

This study examines the role of intellectual property rights (IPR) protection in total factor productivity (TFP) in countries developed at different levels. By undertaking two tests using data of 1,696 observations across 95 countries during 2001–2018 and data of 906 observations covering 87 countries in the 1965–2015 period, we find that the linkage of IPR protection to TFP is negative in least-developed countries while inverted U-shaped in developing and developed countries. In addition, developed countries have the strongest IPR protection and least-developed countries offer the weakest protection, and the optimal IPR protection level for TFP in developed countries is greater than that in developing countries. This study enriches our knowledge of both antecedents of TFP and implications of IPR protection. It provides empirical support for the institution-based view of IPR history and extends the view to the context of developed countries. This study also informs policymakers the proper level of IPR protection if the goal is to promote TFP.

Suggested Citation

  • Su, Zhongfeng & Wang, Chenfeng & Peng, Mike W., 2022. "Intellectual property rights protection and total factor productivity," International Business Review, Elsevier, vol. 31(3).
    • Handle: RePEc:eee:iburev:v:31:y:2022:i:3:s0969593121001748
    DOI: 10.1016/j.ibusrev.2021.101956
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