Strategic Intellectual Property Protection Policy and North-South Technology Transfer
نویسنده
چکیده
I analyze the welfare implications of protecting intellectual property rights (IPRs) in developing countries through its impact on innovation, market structure, and technology transfer. FDI, tariffs, and cooperation are introduced to the strategic IPR literature. In a North-South framework, the Southern government sets the IPR policy strategically by anticipating the Northern firm’s decision on R&D expenditure and multinationalization in the presence of tariffs. A stringent IPR policy is always chosen in the South in order to motivate technology transfer, which in turn improves welfare. If cooperation is allowed for, joint ventures are very likely to occur for less R&D-intensive industries. JEL classifications: O34, F23, F13, L13, O32, L11, O38
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