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Linkages Between Patent Protection and Strategic R&D Policy: Case of the Exogeneous Regime of IPR Protection

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  • Moonsung Kang

    (Korea University)

Abstract

This paper explores strategic R&D policy when countries�� regimes on protection of intellectual property rights (IPR) are exogenously given under the multilaterally agreed disciplines. Under the weak enforcement regime, domestic and foreign R&D activities are strategic complements rather than strategic substitutes and hence R&D reaction curves are upward sloping. Government wishes to subsidize its domestic firm��s R&D in the presence of sufficiently weak IPR protection, because it is able to encourage R&D by the foreign rival firm, and greater R&D investment of foreign rivals increases the profits of the domestic firm.

Suggested Citation

  • Moonsung Kang, 2008. "Linkages Between Patent Protection and Strategic R&D Policy: Case of the Exogeneous Regime of IPR Protection," Korean Economic Review, Korean Economic Association, vol. 24, pages 367-382.
    • Handle: RePEc:kea:keappr:ker-20081231-24-2-03
    as

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    References listed on IDEAS

    as
    1. Bagwell, Kyle & Staiger, Robert W, 1992. "The Sensitivity of Strategic and Corrective R&D Policy in Battles for Monopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(4), pages 795-816, November.
    2. Moonsung Kang, 2006. "Trade policy mix: IPR protection and R&D subsidies," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 744-757, August.
    3. Moonsung Kang, 2006. "Trade policy mix: IPR protection and R&D subsidies," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(3), pages 744-757, August.
    4. Moonsung Kang, 2009. "Understanding Agreements on TRIPS and Subsidies in Tandem," Open Economies Review, Springer, vol. 20(2), pages 225-240, April.
    5. Maggi, Giovanni, 1996. "Strategic Trade Policies with Endogenous Mode of Competition," American Economic Review, American Economic Association, vol. 86(1), pages 237-258, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Strategic Trade Policy; R&D Subsidies; Intellectual Property Rights;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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