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Asymmetric Intellectual Property Rights Protection and North-South Welfare

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  • Grinols, Earl L.
  • Lin, Hwan C.

Abstract

We construct a model of dynamic endogenous product innovation and international trade, using it to calculate the welfare effects of lower intellectual property rights (IPR) protection in the non-innovating South than in the innovating North. We find that it is generally in the North’s interest to protect its innovating sector by an import embargo on IPR-offending goods from abroad. We explain the paradoxical outcome where the North gains from weaker IPR enforcement in the South through a decomposition of the dynamic welfare formula. Key features include the ability of lower Southern IPR protection to spur innovation of Northern goods and to make available greater resources for Northern production of current consumption goods. Maintaining Northern IPR standards can be in the South’s interests even though the South would favor lower uniform levels of IPR protection.

Suggested Citation

  • Grinols, Earl L. & Lin, Hwan C., 1997. "Asymmetric Intellectual Property Rights Protection and North-South Welfare," MPRA Paper 19542, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19542
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    References listed on IDEAS

    as
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    7. Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
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    Cited by:

    1. Lin, Hwan C., 2013. "Optimal Patent Life in a Variety-Expansion Growth Model," MPRA Paper 49790, University Library of Munich, Germany.
    2. Dillen, Koen & Tollens, Eric & Wesseler, Justus, 2010. "The Barroso Proposal Of Nationalizing Gmapproval: A Look At Ht Sugar Beets Under Changed European Sugar Policy," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188086, International Consortium on Applied Bioeconomy Research (ICABR).
    3. Hwan C. Lin, 2015. "Creative Destruction and Optimal Patent Life in a Variety‐Expanding Growth Model," Southern Economic Journal, John Wiley & Sons, vol. 81(3), pages 803-828, January.
    4. Lin, Hwan C., 2010. "Optimizing international technology diffusion: A middle-income country's perspective," Economic Modelling, Elsevier, vol. 27(1), pages 54-66, January.
    5. Lin, Hwan C., 2010. "Technology diffusion and global welfare effects: Imitative R&D vs. South-bound FDI," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 231-247, November.
    6. Lin, Hwan C. & Russo, Benjamin, 1999. "A Taxation Policy Toward Capital, Technology and Long-Run Growth," Journal of Macroeconomics, Elsevier, vol. 21(3), pages 463-491, July.

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    More about this item

    Keywords

    Intellectual Property Rights; Innovation; Imitation; North; South; Welfare;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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