nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2012‒06‒13
six papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Market Power in the Global Economy: The Exhaustion and Protection of Intellectual Property By Kamal Saggi
  2. A framework for assessing innovation collaboration partners and its application to India By De Prato, Giuditta; Nepelski, Daniel
  3. Model of Hypothecated tax on Information goods By Oksana Melikhova
  4. Internationalisation of ICT R&D in Asia vis a vis the world regions By Nepelski, Daniel; De Prato, Giuditta
  5. Amateur or professional? A new look at 19th century. patentees in Norway By Basberg, Bjørn L.
  6. Citation Success Over Time: Theory or Empirics? By David W. Johnston; Marco Piatti; Benno Torgler

  1. By: Kamal Saggi (Department of Economics, Vanderbilt University)
    Abstract: We develop a North-South model in which a firm that enjoys monopoly status in the North (by virtue of a patent or a trademark) has the incentive to price discriminate internationally because Northern consumers value its product more than Southern ones. While North's policy regarding the territorial exhaustion of intellectual property rights (IPR) determines whether the firm can exercise market power across regions, Southern policy regarding the protection of IPR determines the firm's monopoly power within the South. In equilibrium, each region's policy takes into account the firm's pricing strategy, its incentive to export, and the other region's policy stance. Major results are: (i) the North is more likely to choose international exhaustion if the South protects IPR whereas the South is more willing to offer such protection if the North implements national exhaustion; (ii) the firm values IPR protection less than the freedom to price discriminate internationally if and only if its quality advantage over Southern imitators exceeds a certain threshold; and (iii) requiring the South to protect IPR increases global welfare iff such protection is necessary for inducing the firm to export to the South.
    Keywords: Exhaustion of IPRs, imitation, market power, TRIPS, welfare
    JEL: F13 F10 F15
    Date: 2012–03
  2. By: De Prato, Giuditta; Nepelski, Daniel
    Abstract: We develop a framework for assessing innovation collaboration partners. Based on the evidence from existing empirical studies, we identify four elements relevant as drivers of innovation collaboration. These elements include inventive capacity, technological specialization patterns, openness to international innovation collaboration and economic potential of technology. In order to make the framework operational, we propose a set of patent-based indicators that capture the relevant elements. In a second step, we apply the framework to analyse the attractiveness of India as a partner for innovation collaboration. Except for mapping India’s technological specialization patterns evolution, we show that it is a country very open to international collaboration. Moreover, as a lion’s share of India’s inventions is patented outside of the country, it can be expected that the technology developed in India has supranational commercial potential.
    Keywords: collaborative innovation; science and technology collaboration; globalisation of technology; patent analysis; India
    JEL: O30 F23 O57 D80 O14
    Date: 2012–05–31
  3. By: Oksana Melikhova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)
    Abstract: Information or knowledge, which can be incorporated in tangible objects at the same time in an unlimited number of copies at different locations anywhere in the world, constitutes Intellectual Property (IP) of an information producer. Intellectual property rights (IPR) legislation was created to optimize social welfare and to promote production of information by granting producers a temporary monopoly in return for a disclosure of their works. However, current IPR regimes are over-protective in terms of monopoly that is granted to a producer but they are under-protective against piracy and unauthorized use. Nowadays, the main effort is made to secure information in order to forbid unauthorized use, and thus this approach creates high barriers for information diffusion. The aim of the current work is to look for alternative solution of the IPR problem which can be defined as: how to profit from production of information without reduction its natural non-excludability and transferability. One of the possible solutions of IPR problem could be introduction of hypothecated tax on information goods. A theoretical model which describes exchange and production of the information goods was developed in support of the suggested solution. The case when production of the information goods is subsidized from the tax proceeds is also compared with the case when the information goods are sold on the market for unlimited flat rate. It was found that under assumption of homogeneous wealth and cost distributions the both cases result in the same consumption levels and the same condition on production costs.
    Keywords: Information good; Intellectual property rights; Hypothecated tax
    JEL: O34 O38
    Date: 2012–06
  4. By: Nepelski, Daniel; De Prato, Giuditta
    Abstract: We analyse the internationalisation of ICT R&D in Asia and compare it with the other world regions. Despite the strong linkages between Japan, the US and the EU, Asia seems to be very attractive as a location for R&D activities. It is also striking how the role of Japan as a partner of other Asian countries decreased mainly in favour of the US. At the aggregate level, there are strong differences in R&D internationalisation across regions. This might indicate that each region follows a different R&D internationalisation path. Alternatively, it might also be a sign of unequal capabilities of "going global". In this respect, the US offers an interesting example of a region which benefit from the process of internationalisation of inventive activity not only through building research collaborations with foreign inventors, but also through successfully capturing innovations developed by foreign researchers.
    Keywords: Globalisation; R&D internationalization; R&D location; patent statistics
    JEL: O32 D80
    Date: 2011–12–01
  5. By: Basberg, Bjørn L. (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: The paper analyses Norwegian 19th century patentees. A special focus is on the affiliation or relationship of the patentees to the manufacturing industries, business and the wider economy. A main question is whether the inventors were what might be called ‘amateurs’ working independently, or ‘professionals’ working closer to firms or institutions. A main finding is that even the individual patentees, that comprised the majority of all patentees, had strong associations with industry, and the distinction between ‘professionals’ and ‘amateurs’ is not all that useful.
    Keywords: Industrial breakthrough; Norway; patentees; patents; professional inventors.
    JEL: N63 N73 O31 O34
    Date: 2012–04–26
  6. By: David W. Johnston; Marco Piatti; Benno Torgler
    Abstract: This study investigates the citation patterns of theoretical and empirical papers over a period of almost 30 years, while also exploring the determinants of citation success. The results indicate that empirical papers attract more citation success than theoretical studies. However, the pattern over time is very similar with yearly mean citations peaking after around 4 years. Moreover, among empirical papers it appears that the cross-country studies are more successful than single country studies focusing on North America data or other regions.
    Keywords: Citations; Theory, Empirics; Cross-Country; North America
    JEL: A11 B40 C0 N01 Z0
    Date: 2012–06

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