nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2019‒10‒07
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Dynamic Effects of Patent Policy on Innovation and Inequality in a Schumpeterian Economy By Chu, Angus C.; Furukawa, Yuichi; Mallick, Sushanta; Peretto, Pietro; Wang, Xilin
  2. World Corporate Top R&D investors: Shaping the Future of Technologies and of AI By Helene Dernis; Petros Gkotsis; Nicola Grassano; Shohei Nakazato; Mariagrazia Squicciarini; Brigitte van Beuzekom; Antonio Vezzani
  3. Intellectual Property Protection and Foreign Direct Investment into Less Developed Economies in the post-TRIPs Period By Sunil Kanwar; Stefan Sperlich

  1. By: Chu, Angus C.; Furukawa, Yuichi; Mallick, Sushanta; Peretto, Pietro; Wang, Xilin
    Abstract: This study explores the dynamic effects of patent policy on innovation and income inequality in a Schumpeterian growth model with endogenous market structure and heterogeneous households. We find that strengthening patent protection has a positive effect on economic growth and a positive or an inverted-U effect on income inequality when the number of differentiated products is fixed in the short run. However, when the number of products adjusts endogenously, the effects of patent protection on growth and inequality become negative in the long run. We also calibrate the model to US data to perform a quantitative analysis and find that the long-run negative effect of patent policy on inequality is much larger than its short-run positive effect. This result is consistent with our empirical finding from a panel vector autoregression.
    Keywords: patent policy; income inequality; innovation; endogenous market structure
    JEL: D3 O3 O4
    Date: 2019–09
  2. By: Helene Dernis (OECD); Petros Gkotsis (European Commission - JRC); Nicola Grassano (European Commission - JRC); Shohei Nakazato (OECD); Mariagrazia Squicciarini (OECD); Brigitte van Beuzekom (OECD); Antonio Vezzani
    Abstract: This report brings together data on patents, scientific publications, trademarks and designs of the world’s top corporate R&D investors to shed some light on the role they play in shaping the future of technologies and AI. As for the two previous editions, the present report is the product of a collaborative effort of the JRC of the European Commission and the OECD, two organisations committed to provide high quality open data and up-to-date indicators and analysis. The audience this report wants to reach is quite diverse: from the scientific community to the industry representatives, from practitioners to policy makers. Its scope is to be a useful source of analysis and data for all those interested in getting an understanding of the scientific and technological activities of key industrial players, particularly in the field of AI. The data underlying the analysis presented are publicly available for all those who want to use them for further analysis.
    Keywords: R&D investment, Artificial Intelligence, Intellectual Property, Patents, Trademarks,Scientific publications
    Date: 2019–09
  3. By: Sunil Kanwar (Department of Economics, Delhi School of Economics); Stefan Sperlich (Geneva School of Economics and Management, University of Geneva)
    Abstract: In this paper we study the relationship between the strength of intellectual property (IP) protection that less developed countries provide and foreign direct investment (FDI) flows into these countries, in the post-TRIPs period 2004-2015. Our sample period is highly appropriate insofar as it comes after the ten year period that the developing countries were allowed for implementing IP reforms in accordance with the Trade-Related Intellectual Property Rights (TRIPs) agreement. Further, it is long enough to permit the modelling of a delayed FDI response to the IP reform stimulus. Our modelling strategy attempts to capture the heterogeneity of the impact of the IP reform on the FDI inflows by estimating a conditional difference-in-differences specification. Thus, we allow for the fact that the impact of IP reform can vary significantly across countries depending on the magnitude of intellectual property that they own for which they seek such protection, for that would indicate the importance that they attach to IP protection. Estimating a varying coefficient model, our results do not provide evidence of a statistically significant effect of IP reform on FDI inflows into less developed countries, nor do we find that the effect of such reform is significantly stronger for countries that own relatively larger amounts of intellectual property. These results hold contemporaneously as well as with lags. Instead, FDI inflows appear to be driven by market size and domestic investment climate variables. Disaggregating our sample into the sub-groups of developing countries and least developed countries, we find that our overall results for less developed countries are driven by the sub-group of developing countries.
    Keywords: Foreign direct investment, Intellectual property protection
    JEL: O34 O24 O11
    Date: 2019–09

This nep-ipr issue is ©2019 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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.