Intellectual Property Rights and Economic Development
Keywords:
Intellectual property rights (IPRS), IPRS owners, corporate rules and laws, Foreign Direct Investment, economic developmentAbstract
This essay offers a critical assessment of how a productive system of intellectual property rights (IPRS) may aid or impede economic development. IPRS can be useful in promoting the growth of new businesses, rationalizing unproductive industries, and stimulating the development of innovative technologies. By increasing the cost of copying and allowing monopolistic activity by IPRS owners, they may impair development prospects. The competitiveness of markets and the effectiveness of relevant corporate rules and laws, together with elements of competition policy and technological development policy, determine the potential profits and losses. The available empirical evidence on these subjects is examined in the study. The evidence is consistent with the idea that, while Foreign Direct Investment and technology transfer increase when patent rights are enhanced, product innovation is sensitive to IPRS in developing nations. Altogether, there is a benefit to growth, but this benefit is reliant on how driven the economy is.
References
Romer PM. Increasing returns and long-run growth. J Pol Econ. 1986;94(5):1002-37. doi: 10.1086/261420.
Lucas RE. On the mechanics of economic development. J Monet Econ. 1988 Jul;22(1):3-42. doi: 10.1016/0304-3932(88)90168-7.
Rebelo S. Long-Run Policy Analysis and Long-Run Growth. J Pol Econ. 1991;99(3):500-21. doi: 10.1086/261764.
Barro RJ. Inflation and economic growth. Ann Econ Fin Soc for AEF. 2013;14(1), May:121-44.
Becker GS, Murphy KM, Tamura R. Human capital, fertility, and economic growth. J Pol Econ. 1990;98(5, Part 2):S12-37. doi: 10.1086/261723.
Rogers EM. Diffusion of Innovations. 5th ed. New York: Free Press; 2003.
Barro RJ. International data on educational attainment: updates and implications. Oxf Econ Pap. 2001 Jul 1;53(3):541-63. doi: 10.1093/oep/53.3.541.
Falvey R, Foster N, Greenaway D. Intellectual property rights and economic growth. Rev Dev Econ. 2006 Nov;10(4):700-19. doi: 10.1111/j.1467-9361.2006.00343.x.
Maskus Keith E. Intellectual property rights and economic development. Case W. Res. J. Int'l L. 2000; 32(3):471-506.
Nair‐Reichert U, Duncan R. Patent Regimes, Host Country Policies, and the Nature of MNE Activities. Rev Int Econ. Patent regimes. 2008 Sep;16(4):783-97. doi: 10.1111/j.1467-9396.2008.00775.x.
Primo Braga Carlos A, Carsten Fink, Claudia Paz Sepulveda. Intellectual Property Rights and Economic Development. Washington, D.C.: World Bank, 2000.
Maskus Keith E. Intellectual property rights and foreign direct investment. CIES policy discussion paper 0022. Australia: University of Adelaide; 2000 May.
Janjua PZ, Samad G. Intellectual property rights and economic growth: the case of middle income developing countries. Pak Dev Rev. 2007 Dec;46(4II):711-22. doi: 10.30541/v46i4IIpp.711-722.
Rafiquzzaman M. The impact of patent rights on international trade: evidence from Canada. Canadian J Econ. 2002 May;35(2):307-30. doi: 10.1111/1540-5982.00132.
Clark J, Freeman C, Soete L. Long waves, inventions, and innovations. Futures. 1981 Aug;13(4):308-22. doi: 10.1016/0016-3287(81)90146-4.
Coe DT, Helpman E, Hoffmaister AW. International R&D spillovers and institutions. Washington, DC: International Monetary Fund; April 2008; 2008 [IMF working paper].
Lin HC. Shall the Northern optimal R&D subsidy rate inversely respond to Southern intellectual property protection? South Econ J. 2002 Oct;69(2):381-97. doi: 10.1002/j.2325-8012.2002.tb00498.x.
Jeong-Yeon L, Lee JY, Mansfield E. Intellectual property protection and U.S. foreign direct investment. Rev Econ Stat. 2023;78(2):181-6.
Yang G, Maskus KE. Intellectual property rights and licensing: an econometric investigation. Weltwirtsch Arch. 2001 Mar;137(1):58-79. doi: 10.1007/BF02707600.
Helpman E. Innovation, imitation, and intellectual property rights. Econometrica. 1993;61(6):1247-80. doi: 10.2307/2951642.
Kondo EK. The Effect of patent protection on foreign direct investment. The J World Trade. 1995;29(6):97-122. doi: 10.54648/TRAD1995044.
You K, Katayama S. Intellectual property rights protection and imitation: an empirical examination of Japanese FDI in China. Pac Econ Rev. 2005 Dec;10(4):591-604. doi: 10.1111/j.1468-0106.2005.00294.x.
Smarzynska Javorcik B. The composition of foreign direct investment and protection of intellectual property rights: evidence from transition economies. Eur Econ Rev. 2004;48(1):39-62. doi: 10.1016/S0014-2921(02)00257-X.
Gaikwad A, Dhokare S, CMA. A Study of intellectual property rights and its significance for business. J Comput Acoust. 2020 Sep;10(2):552-61.
Swilam Y. The potential of intellectual property rights for economic development: A case study on India [masters thesis]. Sweden: Lunds Universitet; 2017 Jun.
Solow RM, Swan TW. Economic growth and capital accumulation. Econ Rec. Scirp.org. 1956;32(2):334-61. doi: 10.1111/j.1475-4932.1956.tb00434.x.
Barro RJ. Human capital and growth. Am Econ Rev. 2001 May 1;91(2):12-7. doi: 10.1257/aer.91.2.12.
