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Do Stronger Patents Induce More Local Innovation?

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  • Lee Branstetter

Abstract

One of the central arguments advanced by proponents of stronger intellectual property rights (IPRs) systems is that strengthening such systems induces higher levels of innovation by domestic firms. This article reviews several empirical studies undertaken by economists to assess the validity of this claim. Most studies fail to find evidence of a strong positive response by domestic innovators that could be reasonably ascribed to the effects of stronger IPRs. The benefits of stronger IPRs -- to the extent that they exist at all -- are more likely to come instead from an acceleration in the domestic deployment of advanced technology by the affiliates of foreign firms. Oxford University Press 2004; all rights reserved, Oxford University Press.

Suggested Citation

  • Lee Branstetter, 2004. "Do Stronger Patents Induce More Local Innovation?," Journal of International Economic Law, Oxford University Press, vol. 7(2), pages 359-370, June.
    • Handle: RePEc:oup:jieclw:v:7:y:2004:i:2:p:359-370
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    Cited by:

    1. Armin Mertens & Marc Scheufen, 2024. "Intellectual property and fourth industrial revolution technologies: how the patent system is shaping the future in the data-driven economy," European Journal of Law and Economics, Springer, vol. 57(1), pages 275-310, April.
    2. Di Vita, Giuseppe, 2013. "The TRIPs agreement and technological innovation," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 964-977.
    3. Willoughby, Kelvin W. & Mullina, Nadezhda, 2021. "Reverse innovation, international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation," Technology in Society, Elsevier, vol. 67(C).
    4. Bronwyn H. Hall, 2024. "Patents, innovation, and development," International Review of Applied Economics, Taylor & Francis Journals, vol. 38(1-2), pages 17-42, March.
    5. Carsten Fink & Bronwyn H. Hall & Christian Helmers, 2018. "Intellectual Property Use in Middle Income Countries: The Case of Chile," NBER Working Papers 24348, National Bureau of Economic Research, Inc.
    6. Rakesh Basant & Pulak Mishra, 2019. "Impact of Vertical Integration on Market Power in Indian Manufacturing Sector During the Post-Reform Period," Journal of Industry, Competition and Trade, Springer, vol. 19(4), pages 561-581, December.
    7. Basant, Rakesh & Mishra, Pulak, 2017. "Vertical Integration, Market Structure and Competition Policy: Experiences of Indian Manufacturing Sector during the Post Reform Period," IIMA Working Papers WP 2017-09-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Matthew S. Clancy & GianCarlo Moschini, 2017. "Intellectual Property Rights and the Ascent of Proprietary Innovation in Agriculture," Annual Review of Resource Economics, Annual Reviews, vol. 9(1), pages 53-74, October.
    9. Klein, Michael A., 2020. "Secrecy, the patent puzzle and endogenous growth," European Economic Review, Elsevier, vol. 126(C).
    10. Hella Bani Baghdadi & Sami Aouadi, 2018. "Does Patent Performance Promote Relative Technological Performance in Countries Bordering the Mediterranean?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1246-1269, December.
    11. Bronwyn H. Hall, 2014. "Does patent protection help or hinder technology transfer?," Chapters, in: Sanghoon Ahn & Bronwyn H. Hall & Keun Lee (ed.), Intellectual Property for Economic Development, chapter 2, pages 11-32, Edward Elgar Publishing.
    12. Branstetter, Lee G. & Kwon, Namho, 2018. "South Korea's transition from imitator to innovator: The role of external demand shocks," Journal of the Japanese and International Economies, Elsevier, vol. 49(C), pages 28-42.
    13. Kelvin W. Willoughby, 2020. "Endogenous innovation, outward-bound international patenting and national economic development," The Journal of Technology Transfer, Springer, vol. 45(3), pages 844-869, June.

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