Article

Intellectual Property Rights Protection and Trade: An Empirical Analysis

Emmanuelle Auriol, Sara Biancini, and Rodrigo Paillacar

Abstract

The paper proposes an empirical analysis of the determinants of the adoption of Intellectual Property Rights (IPR) and their impact on innovation in manufacturing. The analysis is conducted with panel data covering 112 countries. First we show that IPR protection is U-shaped with respect to a country’s market size and inverse-U-shaped with respect to the aggregated market size of its trade partners. Second, reinforcing IPR protection reduces on-the-frontier and inside-the-frontier innovation in developing countries, without necessarily increasing innovation at the global level.

Keywords

Intellectual Property Rights; Innovation; Developing Countries; Market Potential,; Trade;

JEL codes

  • F12: Models of Trade with Imperfect Competition and Scale Economies • Fragmentation
  • F13: Trade Policy • International Trade Organizations
  • F15: Economic Integration
  • L13: Oligopoly and Other Imperfect Markets
  • O31: Innovation and Invention: Processes and Incentives
  • O34: Intellectual Property and Intellectual Capital

Replaces

Emmanuelle Auriol, Sara Biancini, and Rodrigo Paillacar, Intellectual Property Rights Protection and Trade: An Empirical Analysis, TSE Working Paper, n. 22-1354, September 2022.

Reference

Emmanuelle Auriol, Sara Biancini, and Rodrigo Paillacar, Intellectual Property Rights Protection and Trade: An Empirical Analysis, World Development, vol. 162, n. 106072, February 2023.

Published in

World Development, vol. 162, n. 106072, February 2023