nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2014‒05‒09
three papers chosen by
Giovanni Ramello
Universita' del Piemonte Orientale Amedeo Avogadro

  1. The impact of R&D subsidies on firm innovation By Raffaello Bronzini; Paolo Piselli
  2. Legal Enforcement against Illegal Imitation in Developing Countries By Suzuki, Keishun
  3. Digital files dealers and prohibition in the context of the French 3 strikes (HADOPI) law By Sylvain Dejean; Raphaël Suire

  1. By: Raffaello Bronzini (Bank of Italy); Paolo Piselli (Bank of Italy)
    Abstract: This paper evaluates the impact of an R&D subsidy program implemented in a region of northern Italy on innovation by beneficiary firms. In order to verify whether the subsidies enabled firms to increase patenting activity, we exploit the mechanism used to allot the funds. Since only projects that scored above a certain threshold received the subsidy, we use a sharp regression discontinuity design to compare the number of patent applications, and the probability of submitting one, of subsidized firms with those of unsubsidized firms close to the cut-off. We find that the program had a significant impact on the number of patents, more markedly in the case of smaller firms. Our results show that the program was also successful in increasing the probability of applying for a patent, but only in the case of smaller firms.
    Keywords: research and development, investment incentives, regression discontinuity design, patents
    JEL: R0 H2 L10
    Date: 2014–04
  2. By: Suzuki, Keishun
    Abstract: This paper investigates the effect of seizing illegal imitations within developing countries on imitation, innovation, and economic growth. The model shows four main results. First, a higher seizure rate does not always decrease imitative activity in the South because it may encourage the infringer to commit repeated offenses. Second, the model shows a U-shaped relationship between innovation and the strengthening seizure rate. Third, numerical analysis indicates that a sufficiently high seizure rate that is larger than a critical value is required to enhance economic growth. Finally, unlike seizure, the extended model shows that a prohibition on importing Southern illegal imitations in the North necessarily lowers imitative activities.
    Keywords: Innovation, North-South, Seizing Illegal Imitation, Import Prohibition
    JEL: F13 O31 O34
    Date: 2014–04–22
  3. By: Sylvain Dejean (LR-MOS, University of La Rochelle, France); Raphaël Suire (CREM UMR CNRS 6211, University of Rennes 1, France)
    Abstract: Illegal digital file consumption is widely believed to influence sales of cultural goods. Online piracy is now  regulated  and  prohibited  in  some  countries,  especially  in  France,  where  HADOPI  is  a  legal  authority in charge of Peer-­‐to-­‐Peer (P2P) protocol monitoring. We claim that prohibitions on digital markets  share  some  characteristics  of  other  criminal  activities  such  as  those  of  the  drug  market.  Prohibition of a good or service can lead to the emergence of a black market embedded in a social network.  Based  on  an  original  and  representative  2012  French  survey,  we  show  that  such  a  social  and offline organisation is observed. Indeed, offline swapping is now the largest way to exchange digital  files.  We  show  that  offline  swapping  is  embedded  in  a  hierarchical  social  network  where  different behaviours are observed. On one hand, there are wholesalers of digital files who provide more than they receive from this offline network and maintain online downloading activity through P2P technology. On the other hand, there are also the “simple” consumers who consume only from offline  swapping  and  never  provide  files  to  others.  They  never  use  monitored  P2P  technology  because HADOPI acts as a deterrent. Our econometric analysis suggest that this “fear” of HADOPI plays a significant role in structuring this offline swapping network, as the position in the swapping network is driven by the feeling of being threatened by HADOPI.
    Keywords: HADOPI, social network, piracy, prohibition, offline swapping
    Date: 2014–04

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