nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2016‒10‒23
seven papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Intellectual Property Rights Induced Trade By Juan Felipe Bernal Uribe
  2. Nanothechnology and the emergence of a general purpose technology By Stuart Graham; Maurizio Iacopetta
  3. When Discounts Raise Costs: The Effect of Copay Coupons on Generic Utilization By Leemore Dafny; Christopher Ody; Matthew Schmitt
  4. Vertical differentiation and collusion: pruning or proliferation? By Jean Gabszewicz, Jean; Marini, Marco A.; Tarola, Ornella
  5. European High-End Varieties in International Competition By Lionel Fontagné; Sophie Hatte
  6. Discovery of brand image by the arts: Empirical comparison of Arts-Based Brand Research Methods (ABBR) By Baumgarth, Carsten; Yildiz, Özlem
  7. Place marketing and place branding: A systematic (and tentatively exhaustive) literature review By Renaud Vuignier

  1. By: Juan Felipe Bernal Uribe
    Abstract: A positive relationship between a country’s strength of Intellectual Property Rights (IPRs) and the volume of imports of patent-sensitive goods has been empirically demonstrated. We provide a theoretical explanation of this link. Strengthening IPRs in a given economy generates a reallocation of R&D resources (in the form of skilled labor) out of the imitative activity and into the innovative activity and the production of consumption goods. Foreign patent owners perceive this reallocation of resources as a reduction in the imitation risk arising from the economy undertaking the change. This fall on the risk of imitation is translated as an increase in the expected value of that market. In average, a higher fraction of foreign innovators decide to incur in the ?xed cost of exporting after the change has taken place. This mechanism does not rely on technological assumptions about the innovative capabilities of any country, but rather on the interaction between endowments of R&D resources and national institutions related to IPRs. A calibrated model of this economy predicts an increase in skilled capital remunerations in the North. In the South, the remuneration of exporting innovators increases, while that of imitators and skilled workers in the Final sector decreases. The total number of skilled labor engaged in innovation in the world falls after the change, leading to a decrease in the rate of growth of the world.
    Date: 2016–05–24
  2. By: Stuart Graham (Georgia Institute of technology); Maurizio Iacopetta (Observatoire français des conjonctures économiques)
    Abstract: This article examines how closely nanotechnology resembles a general purpose technology (GPT). Using patented nanotechnology inventions during 1975-2006, we test for characteristics of GPTs identified in the prior literature, and find evidence that nanotechnology shows both “pervasive” adoption and “spawning” of follow-on innovation. Offering a methodological contribution, we employ concentration indexes such as the Gini index and Lorenz curve to construct “knowledge dissemination curves” for different technologies, thereby providing evidence that nanotechnology shares relevant characteristics with other GPTs. Using an entirely new dataset, we use three different definitions of a “nanotechnology patent” and calculate patent generality indexes, finding that nanotechnology patents are significantly more likely to be referenced across technology space than are patents in information technology, another widely-adopted GPT. In another contribution, we suggest that innovative materials may demonstrate the characteristics of a GPT, and provide a historical parallel between the advancement of steel technology in the 19th Century with that of nanotechnology in the present day.
    Keywords: Nanotechnology; General Purpose Technology; Patent Analysis
    JEL: O30 O33 O34
    Date: 2014–12
  3. By: Leemore Dafny; Christopher Ody; Matthew Schmitt
    Abstract: Branded pharmaceutical manufacturers frequently offer "copay coupons'" that insulate consumers from cost-sharing, thereby undermining insurers' ability to influence drug utilization. We study the impact of copay coupons on branded drugs first facing generic entry between 2007 and 2010. To overcome endogeneity concerns, we exploit cross-state and cross-consumer variation in coupon legality. We find that coupons increase branded sales by 60+ percent, entirely by reducing the sales of bioequivalent generics. During the five years following generic entry, we estimate that coupons increase total spending by $30 to $120 million per drug, or $700 million to $2.7 billion for our sample alone.
    JEL: I11 L40 L65
    Date: 2016–10
  4. By: Jean Gabszewicz, Jean; Marini, Marco A.; Tarola, Ornella
    Abstract: In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multi-product firm. We analyse whether pruning emerges and, if so, a fighting brand is marketed. We find that it is always more profitable for colluding firms to adopt a pricing strategy such that some variants are withdrawn from the market. Under pruning, these firms commercialize a fighting brand only when facing competitors in a low-end market.
    Keywords: Vertically Differentiated Markets, Cannibalization, Market Pruning, Price Collusion.
    JEL: D4 D42 D43 L1 L12 L13 L4 L41
    Date: 2016–10–15
  5. By: Lionel Fontagné (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Sophie Hatte (PSE - Paris School of Economics, Université de Rouen, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We study international competition in high-end varieties for 416 detailed HS6 product categories marketed by the leading French luxury brands. We construct a world database of trade flows for these products, computing unit values of related bilateral trade flows and analyzing competition among the main exporters. We use the observed distribution of unit values to define a high-end market segment. Exports of high-end varieties are shown to be less sensitive to distance, and found more sensitive to destination country wealth than other varieties, but only in relation to countries already producing a large range of luxury brands, pointing to a first-mover advantage.
    Keywords: Product differentiation, Market shares, Unit values
    Date: 2016–04–08
  6. By: Baumgarth, Carsten; Yildiz, Özlem
    Abstract: This work develops an evaluation framework to Arts-Based Brand Research (ABBR) to make methods comparable. Further the evaluation framework is used to compare four arts-based methods. It turned out that previous studies try to capture the brand image on a verbal cognitive level, but this proceeds cannot detect the unconscious emotions and attributes. There is a risk of standardized survey, because the emotions and attributes to the brand, which manifest themselves through images, colors, fragrances, etc., cannot be detected. The reason is the loss between the "translations" of non-verbal in the verbal attributes. Therefore, there are arts-based methods that allow working closely on the human senses. Four methods were compared based on the evaluation framework: Lego Serious Play (LSP), Multi Sensory Sculpting (MSS), Psychodrawing (PD) and Collage (C). The results of this study show that the newly developed evaluation framework allows a distinguished and systematic comparison of market research methods. The evaluation framework led to the conclusion that art-based methods are well suited even on sensitive issues such as sustainability. Futhermore the respondents felt the methods as entertaining and enjoyable. The Methods Collage and Psychodrawing performed particularly well with respect to the required time and the variety of associations.
    Abstract: Diese Arbeit entwickelt ein konzeptionelles Beurteilungsraster, um Arts-Based Brand Research (ABBR) Methoden zu beurteilen. Dieses wurde dann genutzt, um vier kunstbasierte Methoden miteinander zu vergleichen. Es stellte sich heraus, dass bisherige Untersuchungen versuchen, das Markenimage, das unter anderem aus unbewussten Emotionen und Attributen besteht, auf verbal- kognitiver Ebene zu erfassen. Es besteht die Gefahr, dass bei einer standardisierten Befragung der Konsumenten die Emotionen und Attribute zur Marke, die sich durch Bilder, Farben, Düfte usw. im Kopf manifestieren, nicht erfasst werden können, da bei der "Übersetzung" von Nonverbalem in das Verbale Attribute verloren gehen. Deshalb existieren kunstbasierte Methoden, die zulassen, nah an den menschlichen Sinnen zu arbeiten. Es wurden vier Methoden anhand des Beurteilungsrasters miteinander verglichen: Lego Serious Play (LSP), Multi Sensory Sculpting (MSS), Psychodrawing (PD) und Collagen-Technik (C). Die Ergebnisse dieser Studie zeigen, dass das neu entwickelte konzeptionelle Beurteilungsraster eine gute und systematische Vergleichbarkeit von Marktforschungsmethoden zulässt. Diese ließ den Schluss zu, dass kunstbasierte Methoden auch bei sensiblen Themen, wie der Nachhaltigkeit, gut einsetzbar sind und die Befragten die Methoden als sehr angenehm und kurzweilig empfanden. Besonders gut schnitten die Methoden Collage und Psychodrawing in Bezug auf die benötigte Zeit und die Vielfalt der Assoziationen ab.
    Date: 2016
  7. By: Renaud Vuignier (UNIL - Université de Lausanne)
    Abstract: This paper presents a systematic and complete overview of the scientific literature in the field of place marketing and place branding research. A total of 1172 articles published between 1976 and 2016 in 98 different journals were analyzed and meticulously classified into categories and subcategories according to disciplinary approach, method used and perspective adopted. This literature review thus provides a detailed overview of the state of the art and reveals various trends and developments in this emerging field of study. Among other things, it demonstrates that the field suffers from a lack of conceptual clarity, diverging definitions and a weak theoretical foundation, which means it addresses a very broad range of research topics. In addition, the field lacks empirical evidence and explanatory articles, meaning that the numerous hypotheses concerning the effects of place marketing activities on attractiveness remain unsubstantiated. The review also underscores the literature’s lack of interest in the political and institutional contexts of places, although this information is crucial in terms of public management. Moreover, this work notes that the rhetoric of consultants is given pride of place, with the publication of numerous prescriptive articles focused on sharing best practices. Finally, this study notes the existence of a significant number of critical articles.
    Keywords: public management,branding,marketing,place,public marketing,brand
    Date: 2016

This nep-ipr issue is ©2016 by Giovanni Ramello. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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