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Heterogeneity of Southern Countries and Southern Intellectual Property Rights Policy

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  • Lapan, Harvey
  • Kim, Jeong-Eon

Abstract

We develop a model with one innovating northern firm and heterogeneous southern firms that compete in a final product market. We assume southern firms differ in their intrinsic costs and their ability to adapt technology and study southern incentives to protect intellectual property rights. We find that in a non-cooperative equilibrium governments will resist IPR protection, but collectively southern countries benefit from some protection. We show that countries with more efficient firms prefer higher collective IPR protection than those with less efficient firms. However, given the aggregate level of IPR protection, it is more efficient if the more efficient countries have weaker IPR protection.

Suggested Citation

  • Lapan, Harvey & Kim, Jeong-Eon, 2006. "Heterogeneity of Southern Countries and Southern Intellectual Property Rights Policy," ISU General Staff Papers 200603010800001214, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:200603010800001214
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    Cited by:

    1. Alireza Naghavi & Yingyi Tsai, 2015. "Cross-Border Intellectual Property Rights: Contract Enforcement and Absorptive Capacity," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(2), pages 211-226, May.
    2. Bagchi, Aniruddha & Roy, Abhra, 2011. "Endogenous R&D and Intellectual Property Laws in Developed and Emerging Economies," MPRA Paper 31822, University Library of Munich, Germany.
    3. Morita, Hodaka & Nguyen, Xuan, 2021. "FDI and quality-enhancing technology spillovers," International Journal of Industrial Organization, Elsevier, vol. 79(C).
    4. Qi Duan & Yupeng Shi & Jingwei Sun, 2017. "Intellectual Property Protection: Prevention in Advance or Punishment Afterward," Annals of Economics and Finance, Society for AEF, vol. 18(1), pages 129-171, May.
    5. Arijit Mukherjee & Uday Bhanu Sinha, 2013. "Patent Protection, Southern Innovation and Welfare in a North–South Trade Model," Economica, London School of Economics and Political Science, vol. 80(318), pages 248-273, April.
    6. Caner Demir & Aykut Lenger, 2019. "Intellectual property rights and global imitation chains: the north–south–east model," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 549-569, July.
    7. Ghosh, Arghya & Morita, Hodaka & Nguyen, Xuan, 2018. "Technology spillovers, intellectual property rights, and export-platform FDI," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 171-190.
    8. Abhra Roy & Aniruddha Bagchi, 2011. "Optimal patent policy with endogenous cross-border acquisitions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(3), pages 259-282.
    9. Hodaka Morita & Xuan Nguyen, 2012. "FDI and Technology Spillovers under Vertical Product Di erentiation," Discussion Papers 2012-19, School of Economics, The University of New South Wales.
    10. Aniruddha Bagchi & Abhra Roy, 2012. "Endogenous Research and Development and Intellectual Property Laws in Developed and Emerging Economies," Southern Economic Journal, John Wiley & Sons, vol. 78(3), pages 895-930, January.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • 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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