nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2007‒04‒21
eight papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Understanding the Rationale to Patent in Pharmaceuticals By Machado, H. B.
  2. Intellectual Property Rights, Imitation, and Foreign Direct Investment: Theory and Evidence By Lee Branstetter; Raymond Fisman; C. Fritz Foley; Kamal Saggi
  3. PATENT LICENSING BY MEANS OF AN AUCTION: INTERNAL VS. EXTERNAL PATENTEE By Ramón Faulí-Oller; Joel Sandonís
  4. Efficiency in Public Research Centers: Evaluating the Spanish Food Technology Program By Jiménez-Sáez, Fernando; Zabala-Iturriagagoitia, Jon Mikel; Zofío, José Luis
  5. From Container Knowledge to Entrepreneurial Learning: The Role of Universities By Gerald Braun
  6. Financial Incentives in Academia: Research versus Development By Albert Banal-Estañol; Inés Macho-Stadler
  7. Economic Recognition of Innovation By Rao, Balkrishna
  8. The Innovative Performance of Foreign-owned Enterprises in Small Open Economies By Dachs, Bernhard; Ebersberger, Bernd; Lööf, Hans

  1. By: Machado, H. B.
    Date: 2007–10
    URL: http://d.repec.org/n?u=RePEc:ibm:ibmecp:wpe_74&r=ipr
  2. By: Lee Branstetter; Raymond Fisman; C. Fritz Foley; Kamal Saggi
    Abstract: This paper theoretically and empirically analyzes the effect of strengthening intellectual property rights in developing countries on the level and composition of industrial development. We develop a North-South product cycle model in which Northern innovation, Southern imitation, and FDI are all endogenous. Our model predicts that IPR reform in the South leads to increased FDI in the North, as Northern firms shift production to Southern affiliates. This FDI accelerates Southern industrial development. The South's share of global manufacturing and the pace at which production of recently invented goods shifts to the South both increase. Additionally, the model also predicts that as production shifts to the South, Northern resources will be reallocated to R&D, driving an increase in the global rate of innovation. We test the model's predictions by analyzing responses of U.S.-based multinationals and domestic industrial production to IPR reforms in the 1980s and 1990s. First, we find that MNCs expand the scale of their activities in reforming countries after IPR reform. MNCs that make extensive use of intellectual property disproportionately increase their use of inputs. There is an overall expansion of industrial activity after IPR reform, and highly disaggregated trade data indicate an increase in the number of initial export episodes in response to reform. These results suggest that the expansion of multinational activity more than offsets any decline in the imitative activity of indigenous firms.
    JEL: F23 O33 O34
    Date: 2007–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:13033&r=ipr
  3. By: Ramón Faulí-Oller (Universidad de Alicante); Joel Sandonís (Universidad de Alicante)
    Abstract: An independent research laboratory owns a patented process innovation that can be licensed by means of an auction to two Cournot duopolists producing differentiated goods. For large innovations and close enough substitute goods the patentee auctions o¤ only one license, preventing the full diffusion of the innovation. For this range of parameters, however, if the laboratory merged with one of the firms in the industry, full technology diffusion would be implemented as the merged entity would always license the innovation to the rival firm. This explains that, in this context, a vertical merger is both profitable and welfare improving.
    Keywords: Patent licensing, two-part tariff contracts, vertical mergers
    JEL: L13 L23
    Date: 2007–04
    URL: http://d.repec.org/n?u=RePEc:ivi:wpasad:2007-09&r=ipr
  4. By: Jiménez-Sáez, Fernando (INGENIO (CSIC-UPV)-Universidad Politécnica de Valencia, Valencia, Spain); Zabala-Iturriagagoitia, Jon Mikel (INGENIO (CSIC-UPV)-Universidad Politécnica de Valencia, Valencia, Spain); Zofío, José Luis (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)
    Abstract: We rely on efficiency analysis to evaluate the Spanish R&D public policy based on financial incentives, and investigate to what extent this instrument has been able to promote a multidimensional research output mix, contributing to the articulation of a successful Spanish Food Innovation System. Introducing the use of the generalized distance function within DEA techniques, we assess whether this policy has encouraged the creation, strengthening and promotion of efficient public research units, whose activities present a balanced and comprehensive production of complementary research outputs −personnel training, science and technology results, and socio-economic collaboration with the private sector. Characterizing the alternative ways in which the different research units have been participating in the Spanish Food Technology Program, and hence their role within the innovation system, we conclude that R&D policy efforts have not succeeded in orienting research units toward a balanced output research mix due to wrong incentives and the lack of a sustained budget that would enable the consolidation of emerging research units. Furthermore, we observe that the majority of research units channel their efforts toward achieving science-technology results related to publications and submitted patents, instead of increasing socio-economic results that would strengthen the articulation and efficiency of the innovation system.
    Keywords: Innovation System Management; Research Efficiency; Data Envelopment Analysis
    JEL: C61 D78
    Date: 2007–03
    URL: http://d.repec.org/n?u=RePEc:uam:wpaper:200704&r=ipr
  5. By: Gerald Braun (Hanseatic Institute of Entrepreneurship and Regional Development (HIE-RO) at Rostock University, Faculty of Economics and Social Sciences)
    Abstract: The new quality of international competition changes the function of universities dramatically. They have to ? in addition to their traditional role as sources of ideas, knowledge and intellectual capital ? become agents of innovations, i.e. entrepreneurial universities, enhance regional development and international competitiveness. The transformation of university produced knowledge into market-oriented innovations depends on the quality of academic entrepreneurship. The article analyses two competing approaches to promote academic entrepreneurship: The 'knowledge container' and the 'entrepreneurial learning' approach ? and their foundations in neoclassical and evolutionary growth theory. The obstacles to introduce entrepreneurial learning as an educational innovation are being analysed (non-innovative university culture/history/attitudes, bureaucratic over-regulation, defence of vested rights). The article finally discusses some conditions for successful academic entrepreneurship (corporate university entrepreneurs, change agents, inter-university competition, entrepreneurial universities as learning organisations)
    Keywords: Entrepreneurial university, academic entrepreneurship, container knowledge accumulation, entrepreneurial learning, educational innovations
    JEL: E1 E3 F2
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:ttu:wpaper:150&r=ipr
  6. By: Albert Banal-Estañol; Inés Macho-Stadler
    Abstract: This paper investigates the effects of monetary rewards on the pattern of research. We build a simple repeated model of a researcher capable to obtain innovative ideas. We analyse how the legal environment affects the allocation of researcher?s time between research and development. Although technology transfer objectives reduce the time spent in research, they might also induce  researchers to conduct research that is more basic in nature, contrary to what the ?skewing problem? would presage. We also show that our results hold even if development delays publication.
    Keywords: Faculty behaviour, basic vs. applied research
    JEL: I23 L21 L31 M13 O31
    Date: 2007–04–13
    URL: http://d.repec.org/n?u=RePEc:aub:autbar:693.07&r=ipr
  7. By: Rao, Balkrishna
    Abstract: Globalization has benefited the economies of member countries of the Organization for Economic Cooperation and Development (OECD) by helping their businesses stay profitable through cost-effective outsourcing of mostly garden-variety tasks and some knowledge-based activities. With time, the latter will account for the lion’s share of work outsourced and emerging export houses will also tend to cater more to their own domestic markets because of their expanding infrastructure and growing manpower possessing advanced skills. This will result in a leveled playing field coaxing developed countries to adopt widespread innovations to maintain their high perch in the economic pecking order. Such large-scale creativity can be managed better if it could be gauged with an appropriate measure. This work propounds a new economic measure called the Gross Domestic Innovation (GDI) to quantify innovations in OECD countries. It will supplement universal measures such as the Gross Domestic Product (GDP), productivity and numbers concerning employment. Apart from the methodology for its estimation, the impact of GDI on the various facets of a vibrant economy is discussed and inter alia, the role of GDI in fighting inflation and alleviating the negative influences of globalization is stressed. Also, a tentative analysis on the economies of U.S., Japan, Germany and China is presented to illustrate the concept.
    Keywords: Innovation; GDI; GDP; OECD; Globalization; Patents
    JEL: O38 O32 O34
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:2781&r=ipr
  8. By: Dachs, Bernhard (Austrian Research Centers, Vienna, Austria); Ebersberger, Bernd (Management Center Innsbruck, Innsbruck, Austria); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper compares the innovative performance of foreign-owned and domestically owned enterprises in five European countries. We look at innovation inputs, outputs, and examine how strong foreign-owned enterprises are embedded in the innovations systems of their host countries. We find that foreign ownership causes no differences in innovation input, but yields a higher innovation output and higher labour productivity. In four of the five countries, affiliates of foreign multinationals show a similar or even a higher propensity to co-operate with domestic partners than domestically owned enterprises
    Keywords: Austria; Denmark; Finland; Norway; Sweden; Innovation; Multinational Enterprises; Foreign-owned Enterprises; CIS
    JEL: F23 O31
    Date: 2007–04–16
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0087&r=ipr

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