nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒01‒31
eight papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Intellectual property rights protection and export diversification: The application of utility model laws By Gnangnon, Kimm ; Moser, Constance Besse
  2. Intellectual property rights hinder sequential innovation: Experimental evidence By Brüggemann, Julia ; Crosetto, Paolo ; Meub, Lukas ; Bizer, Kilian
  3. The commitments of the Macedonian agri-food companies towards intellectual property rights By Nacka, Marina ; Simonovska, Ana ; Georgiev, Nenad ; Gjosevski, Dragan
  4. A model of IPRs in the international supply chain of seeds and agricultural production By Eaton, Derek
  5. Tigers and Dragons at the World Intellectual Property Organization By Jean-Frédéric Morin ; Sara Bannerman
  6. Effects of intellectual property rights protection and integration on economic growth and welfare By Lai, Chung-hui ; Wang, Vey
  7. Which firms use trademarks - and why? Representative firm-level evidence from Germany By Crass, Dirk
  8. The impact of brand use on innovation performance: Empirical results for Germany By Crass, Dirk

  1. By: Gnangnon, Kimm ; Moser, Constance Besse
    Abstract: We examine in this paper the impact of the tightening of IPRs, notably patents rights, and the adoption of utility model laws on export diversification. To perform our analysis, we used panel data covering 89 developing and developed countries (of which 55 developing countries) over the period 1975 - 2003, and Lewbel (2012)'s instrumental variable technique. Our results lead us to conclude that for developing countries, legal protection for minor and adaptive inventions could be a springboard for further strengthening of IPRs protection in spurring export diversification, which is essential for the structural change needed for their economic development.
    Keywords: Intellectual Property Rights,Utility Model Laws,Export Diversification,Lewbel Instrumental Variable Technique
    JEL: F14 O24 O34
    Date: 2014
  2. By: Brüggemann, Julia ; Crosetto, Paolo ; Meub, Lukas ; Bizer, Kilian
    Abstract: In this paper we contribute to the discussion on whether intellectual property rights foster or hinder innovation by means of a laboratory experiment. We introduce a novel Scrabble-like creativity task that captures most essentialities of a sequential innovation process. We use this task to investigate the effects of intellectual property allowing subjects to assign license fees to their innovations. We find intellectual property to have an adversely effect on welfare as innovations become less frequent and less sophisticated. Communication among innovators is not able to prevent this detrimental effect. Introducing intellectual property results in more basic innovations and subjects fail to exploit the most valuable sequential innovation paths. Subjects act more self-reliant and non-optimally in order to avoid paying license fees. Our results suggest that granting intellectual property rights hinders innovations, especially for sectors characterized by a strong sequentiality in innovation processes.
    Keywords: innovation,intellectual property,laboratory experiment,real effort task,creativity
    JEL: C91 D89 K39
    Date: 2015
  3. By: Nacka, Marina ; Simonovska, Ana ; Georgiev, Nenad ; Gjosevski, Dragan
    Abstract: We aim to give an overview of the different levels of commitment towards Intellectual Property Rights (IPR) among agri-food companies in the Republic of Macedonia so to emphasize its basic role in creating competitive market position. The low-level IPR committed companies were analyzed by specifying a fixed-effects model, and for the high-level IPR committed companies we used a single case study with a distinctive IP experience in permanently implementing innovation and marketing strategies. The results emphasize the importance of the companies’ IPR strategies for strengthening their market position. In fact, brand equity is created only through constant marketing investments.
    Keywords: IPR, competitive market position, IP assets, brand equity, marketing investments, Agribusiness, Institutional and Behavioral Economics,
    Date: 2014–08
  4. By: Eaton, Derek
    Abstract: This paper analyzes the effects of varying appropriability or strength of IPRs for agricultural seeds. Farmers are modelled as heterogeneous producers, purchasing seed from an innovating monopolist in a vertical product differentiation framework. The effects of IPRs on innovation are endogenized and the welfare of consumers assessed through the price for food. The theoretical analysis reveals some novel aspects of the traditional innovation versus diffusion tradeoff. Less productive producers, and also consumers, are better off with a moderate level of appropriability and lower level of innovation. The model is extended to a two country setting consisting of North and South.
    Keywords: innovation, intellectual property, product differentiation, trade, Crop Production/Industries, International Relations/Trade,
    Date: 2014–08
  5. By: Jean-Frédéric Morin ; Sara Bannerman
    Date: 2015–04–01
  6. By: Lai, Chung-hui ; Wang, Vey
    Abstract: The protection of intellectual property rights (IPR) and the distribution of rent are central issues in R&D-based growth models with the return to innovation serving as the engine of growth. In this paper the authors consider the strength of the intellectual property rights and franchise bargaining system to analyze how the rent/franchise fee and institutional quality affect the economic growth and social welfare. It is found that the intermediate good firm with full IPR protection charges a price equal to the marginal cost. In addition, if imitated technologies exhibit a labor spillover effect, decreasing the IPR protection will increase the rent/franchise fee. The authors also show that the growth-maximizing effects of IPR protection, the bargaining power of intermediate goods firms, and the imitation of technology are no longer equivalent to those effects on welfare-maximization since the welfare result depends on the relative degrees of the growth enhancing effect and crowding-out effect on production.
    Keywords: IPR,R&D,bargaining,endogenous growth,social welfare
    JEL: L11 O40 O30
    Date: 2015
  7. By: Crass, Dirk
    Abstract: Trademarking firms are more productive, generate higher profits, and have a better survival rate. Trademarking firms are in one word more successful, which might motivate non-trademarking firms to adopt a trademark strategy. But this seems not to be the case. The proportion of trademarking firms in the German business sector amounts to just 18%. This figure is quite low, given that nearly each firm has reputation to protect. But why has the vast majority of firms no registered trademarks? Using a representative sample of German firms, the present paper links certain firm characteristics to a firms' propensity to register trademarks. The empirical results point to circumstances under which trademarks are significantly more often used: this is the case where a large distance between a firm and its customers exists, a firm's product quality is difficult to assess, a firm's products are characterized by a limited (but not strong) substitutability, and where a firm is engaged in R&D and introduces innovative products. Trademarks are considerably less frequently used if none of this is the case.
    Keywords: Intellectual Property Rights,Trademarks,Reputation,Innovation
    JEL: C25 D21 L14 O34
    Date: 2014
  8. By: Crass, Dirk
    Abstract: The market launch of product innovations is the most visible output of a firm's investment in innovation activities. To achieve this objective most efficiently, firms strengthen their technological capabilities, acquire external knowledge in a number of different ways, and optimize their innovation process. The success of a firm's innovation strategy has two dimensions: First, the ability of a firm to master the research and development process, leading to the market introduction of a product innovation. Second, the ability to turn the market introduction of a product innovation into commercial success. While a firms technological abilities make a product innovation possible, this product might face a lack of interest among potential customers after its market introduction. The introduction of a product innovation under a brand name might generate interest, adds credibility and reputation and has the potential for the firm to better appropriate the returns from its innovations. This paper investigates the role of brand use for the commercial success of product innovations, using a representative sample of German firms. The results show that firms can improve the odds of commercial success by pursuing a branding strategy. The market introduction of a product innovation is shown to be associated with 35% larger sales if the firm uses an established brand to introduce the product innovation into the market.
    Keywords: innovation performance,brands,trademarks,innovation,Germany
    JEL: O32 O34
    Date: 2014

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