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Do Stronger Intellectual Property Rights Widen Growth Gap?

Author

Listed:
  • Seo, Hwan-Joo

    (Sangji University)

  • Lee, Young Soo

    (Korea Aerospace University)

Abstract

Our study builds a model of cumulative growth in order to analyze the relationship between intellectual property rights (IPRs) and economic growth for a cross-section of countries for the period 1975-2000. This article focuses on the impacts of IPRs on growth gap between countries using a catching-up model and USPTO database. We find that IPRs affect economic growth by stimulating the accumulation of physical capital. However, the economic effects of IPRs on innovation activity are absent in this study. We find also the cumulative causation relationship between investment and growth. Lastly, our estimation results show that the wide variety of possible growth paths available to countries, depending on their 'social capability'.

Suggested Citation

  • Seo, Hwan-Joo & Lee, Young Soo, 2005. "Do Stronger Intellectual Property Rights Widen Growth Gap?," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 9(2), pages 119-143, December.
    • Handle: RePEc:ris:eaerev:0175
    DOI: 10.11644/KIEP.JEAI.2005.9.2.146
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    More about this item

    Keywords

    Intellectual Property Rights; Innovation; Growth Gap;
    All these keywords.

    JEL classification:

    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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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