Intellectual property rights protection and international trade: An economic survey

Prometheus: Critical Studies in Innovation

Volumn 16, Issue 3, 1998, Pages 261-273

  Hall, Peter ^a  

^a UNIVERSITY OF NEW SOUTH WALES   (Australia)

Author keywords

Economic welfare; Growth; Intellectual property; International trade; TRIPS agreement

Indexed keywords

ECONOMIC THEORY; INTELLECTUAL PROPERTY RIGHTS; INTERNATIONAL TRADE; TRADE POLICY;

EID: 85169768909     PISSN: 08109028     EISSN: None     Source Type: Journal    
DOI: 10.1080/08109029808629281     Document Type: Review

References (49)

1. Two recent perspectives from quite different angles may be found in W. Oi, 'On the uncertain returns to inventive activity', in Bureau of Industry Economics, 1994 Conference of Industry Economics, Australia Government Publishing Service, Canberra, 1994, and P. Romer, remarks at Industry Commission conference on R&D policy, Canberra, 19940, cited at p. 185 in Industry Commission, Research and Development, Final Report 44, Australian Government Publishing Service, Canberra, 1995.
2. Two recent perspectives from quite different angles may be found in W. Oi, 'On the uncertain returns to inventive activity', in Bureau of Industry Economics, 1994 Conference of Industry Economics, Australia Government Publishing Service, Canberra, 1994, and P. Romer, remarks at Industry Commission conference on R&D policy, Canberra, 19940, cited at p. 185 in Industry Commission, Research and Development, Final Report 44, Australian Government Publishing Service, Canberra, 1995.
3. Two recent perspectives from quite different angles may be found in W. Oi, 'On the uncertain returns to inventive activity', in Bureau of Industry Economics, 1994 Conference of Industry Economics, Australia Government Publishing Service, Canberra, 1994, and P. Romer, remarks at Industry Commission conference on R&D policy, Canberra, 19940, cited at p. 185 in Industry Commission, Research and Development, Final Report 44, Australian Government Publishing Service, Canberra, 1995.
4. See W. Nordhaus, Invention, Growth and Welfare: A Theoretical Treatment of Technological Change, MIT Press, Cambridge, MA, 1969 for a useful introduction to the issues.
5. It is not implied here that all growth is socially beneficial. Dynamic efficiency requires both the rate and structural composition of economic growth to have regard to long-term constraints.
6. J. Martin, 'X-inefficiency, managerial effort and protection', Economica, 45, 1978, pp. 273-286; P. Geroski, 'Innovation, technological opportunity, and market structure', Oxford Economic Papers, 42, 1990, pp. 586-602.
7. J. Martin, 'X-inefficiency, managerial effort and protection', Economica, 45, 1978, pp. 273-286; P. Geroski, 'Innovation, technological opportunity, and market structure', Oxford Economic Papers, 42, 1990, pp. 586-602.
8. E. Penrose, 'International patenting in the less-developed countries', Economic Journal, 83, 1973, pp. 768-785.
9. For example, W. M. Corden, Trade Policy and Economic Welfare, Oxford University Press, Oxford, 1974; and G. Meier, International Economics: The Theory of Policy, Oxford University Press, Oxford, 1980).
10. For example, W. M. Corden, Trade Policy and Economic Welfare, Oxford University Press, Oxford, 1974; and G. Meier, International Economics: The Theory of Policy, Oxford University Press, Oxford, 1980).
11. Such thinking is often associated with the name of Paul Krugman. See, for example, P. Krugman, 'The narrow moving band, the dutch disease, and the competitive consequences of Mrs Thatcher: notes on trade in the presence of dynamic Scale economies', Journal of Development Economics, 27, 1987, pp. 41-55.
12. The literature was pioneered by P. Romer, 'Endogenous technological change', Journal of Political Economy, 98, 5, 1990, pp. S71-S102. See also P. Aghion & P. Howitt, Endogenous Growth Theory, MIT Press, Cambridge, MA, 1998.
13. The literature was pioneered by P. Romer, 'Endogenous technological change', Journal of Political Economy, 98, 5, 1990, pp. S71-S102. See also P. Aghion & P. Howitt, Endogenous Growth Theory, MIT Press, Cambridge, MA, 1998.
14. G. Grossman & E. Helpman, 'Trade, innovation and growth', American Economic Review (Papers and Proceedings), 80, 2, 1990, pp. 86-91. See also Aghion & Howitt, op. cit., Ref. 8, Ch. 11.
15. G. Grossman & E. Helpman, 'Trade, innovation and growth', American Economic Review (Papers and Proceedings), 80, 2, 1990, pp. 86-91. See also Aghion & Howitt, op. cit., Ref. 8, Ch. 11.
16. The analysis and empirics of convergence are dealt with by S. Dowrick & D. Nguyen 'OECD comparative economic growth 1950-1985: catch-up and convergence', American Economic Review, 79, 5, 1989, pp. 1010-1030; and N.G. Mankiw, D. Romer & D. Weil, 'A contribution to the empirics of economic growth', Quarterly Journal of Economics, 107, 2, 1992, pp. 407-N437.
17. The analysis and empirics of convergence are dealt with by S. Dowrick & D. Nguyen 'OECD comparative economic growth 1950-1985: catch-up and convergence', American Economic Review, 79, 5, 1989, pp. 1010-1030; and N.G. Mankiw, D. Romer & D. Weil, 'A contribution to the empirics of economic growth', Quarterly Journal of Economics, 107, 2, 1992, pp. 407-N437.
18. L. Rivera-Batiz & P. Romer, 'International trade with endogenous technological change', European Economic Review, 35, 1991, pp. 971-1004.
19. A. Subramanian, 'The international economics of intellectual property right protection: a welfare-theoretic trade policy analysis', World Development 19, 8, 1991, pp. 945-956.
20. Ibid., p. 947.
21. Figure 1 is an adaptation of Subramanian, op. cit., Ref. 12, Figure 2, p. 948.
22. The cost curves are drawn horizontally, reflecting an assumption of constant cost production conditions.
23. A third perspective may be that the prospect of a patent encourages R&D leading to the innovation and that this in turn permits learning and other productivity enhancements after the innovation is launched.
24. Adapted from Subramanian, op. cit., Ref. 12, Figure 2, p. 948.
25. Results 1, 2, 4, and 5 are taken from Subramanian, op. cit., Ref. 12, Section 3; results 3 and 6 are found in Section 5.
26. Patents are viewed as only third or fourth best as appropriation-enhancing mechanisms according to R. Levin, R. Klevorick, R. Nelson & S. Winter, 'Appropriating the returns from industrial research and development', Brookings Papers on Economic Activity, 3, 1987, pp. 783-832.
27. Evidence for developing countries is not available. For advanced industrial economies, estimated economy-wide returns from R&D range from 25% to 150%. See Industry Commission, Research and Development, Final Report 44, AGPS, Canberra, 1995; and S. Dowrick, 'The determinants of long-run growth', in P. Anderson, J. Dwyer & D. Gruen (eds), Productivity and Growth, Reserve Bank of Australia, Sydney, 1995.
28. Evidence for developing countries is not available. For advanced industrial economies, estimated economy-wide returns from R&D range from 25% to 150%. See Industry Commission, Research and Development, Final Report 44, AGPS, Canberra, 1995; and S. Dowrick, 'The determinants of long-run growth', in P. Anderson, J. Dwyer & D. Gruen (eds), Productivity and Growth, Reserve Bank of Australia, Sydney, 1995.
29. Other possibilities are considered in subsequent commentary.
30. Subramanian, op. cit., Ref. 12, p. 951.
31. Subramanian, op. cit., Ref. 12, p. 952.
32. I. Diwan & D. Rodrik, 'Patents, appropriate technology and north-south trade', Journal of International Economics, 30, 1991, pp. 27-47.
33. See Refs 8 and 9.
34. E. Helpman, 'Innovation, imitation and intellectual property rights', Econometrica, G1, pp. 1247-1280.
35. The model has its origins in the work of R. E. Lucas, 'On the mechanics of economic development', Journal of Monetary Economics, 22, 1988, pp. 3-42; and G. Grossman & E. Helpman, Innovation and Growth in the Global Economy, MIT Press, Cambridge, MA, 1991. Commentary may be found in S. Dowrick, 'Openness and growth', in P. Lowe & J. Dwyer (eds), International Integration of the Australian Economy, Reserve Bank of Australia, Sydney, 1994; and P. Hall, 'Trade, growth and welfare in a natural-resource rich country', International Journal of Social Economics, 23, 1996, pp. 188-206.
36. The model has its origins in the work of R. E. Lucas, 'On the mechanics of economic development', Journal of Monetary Economics, 22, 1988, pp. 3-42; and G. Grossman & E. Helpman, Innovation and Growth in the Global Economy, MIT Press, Cambridge, MA, 1991. Commentary may be found in S. Dowrick, 'Openness and growth', in P. Lowe & J. Dwyer (eds), International Integration of the Australian Economy, Reserve Bank of Australia, Sydney, 1994; and P. Hall, 'Trade, growth and welfare in a natural-resource rich country', International Journal of Social Economics, 23, 1996, pp. 188-206.
37. The model has its origins in the work of R. E. Lucas, 'On the mechanics of economic development', Journal of Monetary Economics, 22, 1988, pp. 3-42; and G. Grossman & E. Helpman, Innovation and Growth in the Global Economy, MIT Press, Cambridge, MA, 1991. Commentary may be found in S. Dowrick, 'Openness and growth', in P. Lowe & J. Dwyer (eds), International Integration of the Australian Economy, Reserve Bank of Australia, Sydney, 1994; and P. Hall, 'Trade, growth and welfare in a natural-resource rich country', International Journal of Social Economics, 23, 1996, pp. 188-206.
38. The model has its origins in the work of R. E. Lucas, 'On the mechanics of economic development', Journal of Monetary Economics, 22, 1988, pp. 3-42; and G. Grossman & E. Helpman, Innovation and Growth in the Global Economy, MIT Press, Cambridge, MA, 1991. Commentary may be found in S. Dowrick, 'Openness and growth', in P. Lowe & J. Dwyer (eds), International Integration of the Australian Economy, Reserve Bank of Australia, Sydney, 1994; and P. Hall, 'Trade, growth and welfare in a natural-resource rich country', International Journal of Social Economics, 23, 1996, pp. 188-206.
39. See Ref. 27 for references.
40. See Ref. 27 for references.
41. See Rivera-Batiz & Romer, op. cit., Ref. II.
42. The results are found in P. Segerstrom, T. Anant & E. Dinopoulos, 'A Schumpeterian model of the product life cycle', American Economic Review, 80, 5, 1990, pp. 1077-1091.
43. M. Scott Taylor, 'TRIPS, trade and growth', International Economic Review, 35, 2, 1994, pp. 625-637.
44. K. Maskus & M. Penubarti, 'How trade-related are intellectual property rights?', Journal of International Economics, 39, 1995, pp. 227-248.
45. D. Gould & W. Gruben, 'The role of intellectual property rights in economic growth', Journal of Development Economics, 48, 1996, pp. 323-350.
46. J. Dunning, 'The eclectic paradigm of international production: a restatement and some possible extensions', Journal of International Business Studies, 19, 1, 1998, pp. 1-32.
47. C. Correa, 'Intellectual property rights and foreign direct investment', International Journal of Technology Management, 10, 2/3, 1995, pp. 173-199.
48. J.-Y Lee & E. Mansfield, 'Intellectual property protection and US foreign direct investment', Review of Economics and Statistics, 78, 2, 1996, pp. 181-186.
49. See Scott Taylor op. cit., Ref. 32.