The Relationship Between Intellectual Property Rights, Innovation, and Economic Development in the G20 and Selected Developing Countries

The main objective of this study is to examine the relationship between intellectual property right, economic growth, research and development, trademark, and government effectiveness in the G20 and developing countries. The study applied econometric approaches such as panel vector autoregression (PVAR), PVAR Granger causality, variance decomposition, and impulse response functions (IRF). We also applied heterogeneous and second-generation panel data approaches that are effervescent to slope heterogeneity and cross-sectional dependency to panel data revolving 20 countries (G20) and 27 developing countries from 2004 to 2022. To summarize the findings of this research, (1) the study discovered that economic growth, research and development, trademark, and government effectiveness have positive and significant effect on intellectual property right in the G20 countries. (2) Economic growth, trademark, and government effectiveness have positive and significant influence on intellectual property right, but research and development has no relationship with intellectual property right in the developing countries. (3) In the G20 countries, IPR responds favorably to economic growth, research and development, trademark, and government effectiveness shocks. (4) Lastly, IPR responds favorably to economic growth, trademark, and government effectiveness shocks in the developing countries. Our findings highlight the critical role that innovation-growth policies and economic development play as the primary global drivers of intellectual property rights.