Patents, growth, and growing pains in 1900, korekiyo takahashi, the first president of the japanese patent office, announced during a visit to the us patent office. Intellectual property rights, technology and economic development. The economic effect of the intellectual property obligations in free trade agreements mike palmedo draft, may 2012. Ip and exports leading to economic growth and also innovations but findings failed.
Enquiries into intellectual propertys economic impact. Next, the article highlights a key settlement in the history of intellectual property law and international trade. Request pdf intellectual property rights and economic growth interest in links between protection of intellectual property and growth has been revived by. Economic foundations of intellectual property rights. The legal devices that provide such control are called intellectual property rights. Financial development, intellectual property rights, and. Intellectual property rights, multinational firms and. The economic effect of the intellectual property obligations. The wipo treaty and several related international agreements underline that the protection of intellectual property rights is essential to maintaining economic growth. The economic structure of intellectual property law landes, william m. May 06, 2005 the relationship between the strength of a countrys intellectual property rights iprs regime and its rate of growth is theoretically ambiguous, reflecting the variety of channels through which technology can be acquired and their differing importance at different levels of development.
At least one part of its industrial and economic success owes to. Intellectual property rights and economic growth request pdf. One of the factors may be the intellectual property rights and the level of its protection. A component of the multidisciplinary oecd project new. International trade, economic growth and intellectual. Over the past decade, the production of intellectual property rights iprs has undergone tremendous changesfostered on the one hand, by a widening of the range of products and technologies covered by proprietary rights and on the other hand, by policy shifts that have initiated a move towards globally harmonized standards of protection. Particularly for policy makers, it is important to understand whether agreements like trips could potentially harm growth in countries. Intellectual property and public policy in historical. To further exploit the potential of their competitive advantage, producers need effective ways. The role ofintellectualproperty rights ineconomic growth. Considerations about intellectual property rights, innovation and economic growth in the digital economy carmen nadia ciocoiu1 abstract three technological trendsthe omnipresence of information in digital form, the generalised use of computer networks. Stiglitz annual frey lecture february 16, 2007 introductory remarks its a pleasure to be here, at a university where so many people are interested in intellectual. This paper addresses the role of intellectual property rights iprs in the economic growth of countries at different levels of economic development.
Intellectual property rights and economic development before considering how iprs influence economic activity and growth, consider their intended roles in the economy. Interactive effects of intellectual property rights and. This chapter examines the role of intellectual property rights in economic growth, utilizing crosscountry data on patent protection, trade. This study employs a parsimonious model of economic growth to investigate the impact of intellectual property rights iprs protection on the economic growth of organization of the petroleum.
Endogenous growth and intellectual property rights. Financial development, intellectual property rights, and growth. Intellectual property a power tool for economic growth. Intellectual property rights ipr, economic growth, north south model.
Introduction the interaction between intellectual property rights ipr and the rate and direction of technological. Endogenous strength of intellectual property rights. Intellectual property rights and economic development the case for and against private intellectual property rights 14 piprs as an incentive to generate new knowledge 15 piprs as an incentive to disclose new knowledge 18 problems with the. In this paper we endogenize the strength of the intellectual property rights institutions to study how incentives to protect and exploit property rights affect economic growth. This is where intellectual property rights iprs matter for economic development. Integration on economic growth and welfare effects of. I nd that a reduced collateral constraint leads to.
Intellectual property rights in the global economy request pdf. Walter park, intellectual property rights and international innovation. A history of the ownership of ideas in the united states. A number of interesting studies examine the relationship between property rights in general and economic growth torstensson, 1994, svensson, 1994, sachs and warner, 1995, as well as the specific relationship between intellectual property rights and economic growth gould and gruben, 1996, park and ginarte, 1997, thompson and rushing, 1999. Interest in links between protection of intellectual property and growth has been revived by developments in new growth theory and by the wtos trips agreement.
Currently we know that much british ip is being acquired by organisations in china and the middle east, meaning the intellectual property rights are not being exploited for longterm commercial. Journal of intellectual property rights vol 10, november 2005, pp 465473 role of intellectual property in economic growth kaushik laik the west bengal national university of juridical sciences, 12, lb block, sector iii, salt lake city, kolkata 700 098. Received 7 august 2007 received in revised form 30 october 2008. The trips agreement represents a major increase in the global protection of intellectual property. Thus, patents and s serve as tools to stimulate individual, firm, and industry level entrepreneurial ventures that feed into economic activities nationwide. Intellectual property rights and economic development.
Interest in links between protection of intellectual property and growth has been revived by. The chapter also looks at certain policy challenges in ensuring that intellectual property protection continues to promote u. The international political economy of intellectual. Initially, trips was not even a central issue in the uruguay round of the gatt talks that led to the birth of the. Innovation, economic development and intellectual property. Their decisions will be decisive in determining the ultimate distribution of gains and losses from the new global regime. Intellectual property rights, technology and economic. Interactive effects of intellectual property rights and trade.
Appropriate intellectual property protection and economic. The economic structure of intellectual property law. An important question for many countries is whether stricter enforcement of intellectual property laws is a good strategy for economic growth. The growth of human capital and the role of intellectual. Intellectual property ip refers to the creation of mind. Stiglitz introduction my work in the economics of innovation began some forty years ago. Rod and greenaway, david and fostermcgregor, neil, intellectual property rights and economic growth 2004. There are many types of intellectual property, and some countries recognize more than others. In this paper the authors consider the strength of the intellectual property. Innovation, economic development and intellectual property rights. Intellectual property rights protection and economic. Commission on intellectual property rights study paper 1a intellectual property and economic development. In low income countries, this effect further weakens.
Primo braga carsten fink claudia paz sepulveda public disclosure authorized public disclosure authorized public disclosure authorized public disclosure authorized. The intellectual origins of modern economic growth joel mokyr the intellectual origins of the industrial revolution are traced back to the baconian program of the seventeenth century, which aimed at expanding the set of useful knowledge and applying natural philosophy to solve technological problems and bring about economic growth. The economic effect of the intellectual property obligations in. The most wellknown types are s, patents, trademarks, and trade secrets. Pdf intellectual property rights and economic growth. Appropriate intellectual property protection and economic growth in. Gruben, researchofficer federalreserve bankofdallas may 1994 research department working paper 9409 federal reserve bank of dallas. Instead, in developing economies, a minor form of intellectual property rights iprs namely utility models is conducive to innovation and growth, controlling for other factors.
Innovation, economic development, and intellectual property rights. Property rights and intellectual property protection, gdp growth. Pdf neoclassical growth theory emphasises the role of intellectual property rights iprs in the economic growth process through different channels. Intellectual property ip is a category of property that includes intangible creations of the human intellect. In addition to other factors, intellectual property rights.
Hu department of economics national university of singapore and adam b. The wipo intellectual property handbook gives two reasons for intellectual property laws. As far as econometric evidence is concerned, two studies show that patent rights contribute to economic growth, but they emphasize different mechanisms. There is currently a rich literature on the effect of trade and trade openness on economic growth. However, the debate surrounding it has become even more heated after the traderelated intellectual property rights trips agreement. Intellectual property rights and economic growth theory while the discussion above suggests much about the interaction between intellectual property rights and innovation, little has been mentioned about the dynamic process of innovation, which is the backbone of many new theories of endogenous growth. This chapter examines the role of intellectual property rights in economic growth, utilizing crosscountry data on patent protection, trade regime, and countryspecific characteristics. Intellectual property rights and economic growth 165 as far as empirical evidence on the subject is concerned, only limited literature is available compared to. The protection of intellectual property rights has been considered as an engine of economic growth in developed and developing economies. We have looked about us to see what nations are the greatest, so that we can be like them.
In the 1990s dozens of countries unilaterally strengthened their laws and regulations in this area, and many others are poised to do likewise. Intellectual property rights and economic development carlos a. The growth of human capital and the role of intellectual property rights in emerging economies daniel lederman. Intellectual property rights in the global economy. By william daley, the fletcher school of law and diplomacy, tufts university introduction innovation is largely considered to be the principle catalyst of longterm economic growth. Zorina khan department of economics 9700 college station bowdoin college brunswick maine usa 04011 and national bureau of economic research. Economic foundations of intellectual property rights joseph e. This research seeks to know whethertightening intellectual property protection rights in a typical developing country such as nigeria can indeed promote innovation, attract foreign direct investment and invariably spur economic growth. The role of intellectual property rights in economic growth. The role ofintellectualproperty rights ineconomic growth david gould, senioreconomist federalreserve bankofdallas and william c. Intellectual property rights and economic growth subject economics type of the work masters thesis date 21. By influencing the incentives to innovate, intellectual property rights protection may affect economic growth in important ways.
Technological progress is a critical driver of economic growth, and one of the key determinants of technological change is the incentives we provide technology developers to innovate and disseminate their innovations. On the other hand, in lower middle income countries, due to poor protection of intellectual property rights, iprs have only moderate effect on economic growth. Intellectual property rights, technology and economic development experiences of asian countries the ongoing attempt to harmonise and strengthen the intellectual property protection ipp regimes worldwide, as part of the trips agreement, appears to be adversely affecting. Intellectual property rights and economic growth 165 as far as empirical evidence on the subject is concerned, only limited literature is available compared to that in other areas of economics. Chapter 10 the role of intellectual property in the economy. The analysis focuses on esfects of iprs on growth using a quantitative index of iprs. The relationship between intellectual property rights and economic development has attracted a. Innovation, economic development, and intellectual property rights by william daley, the fletcher school of law and diplomacy, tufts university introduction innovation is largely considered to be the principle catalyst of longterm economic growth. Intellectual property rights protection and economic growth.
Intellectual property rights and economic growth by rod. Early precursors to some types of intellectual property existed in societies such as ancient rome, but the. Intellectual property a power tool for economic growth seeks to demystify intellectual property ip and to explain the why and the how of the subject. Therefore, what is the ideal method to spur innovation.
I realized, as i was beginning my work on the economics of information, that knowledge and information are very similar. Property rights and intellectual property protection, gdp growth and wellbeing in latin america. Ipr, innovation, economic growth and development albert g. Overall, the positive impact of intellectual property rights to economic growth and development is encountered in countries with at least an average level of income. Intellectual property rights and economic growth by rod falvey. The economic returns to creating them depend on their costs of creation, their desirability to potential users, the structure of markets in which they are sold, and the legal rights established to permit property owners to control their use. Jaffe department of economics dean of arts and sciences brandeis university october, 2007 1. The growing importance of knowledge and innovation has placed ip rights under the spotlight and highlighted the need to clearly assess how intellectual property interfaces with development in different socio economic contexts. Government produced a report at this scale that details the nature and impact of intellectual property across the entire american economy.
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