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Discussion Paper Details

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Title: Intellectual Property Rights Protection and Trade

Author(s): Emmanuelle Auriol, Sara Biancini and Rodrigo Paillacar

Publication Date: May 2015

Keyword(s): developing countries, imitation, innovation, intellectual property rights, oligopoly and trade policy

Programme Area(s): Development Economics, Industrial Organization and International Trade and Regional Economics

Abstract: The paper studies developing countries' incentives to protect intellectual property rights (IPR). IPR enforcement is U-shaped in a country's market size relative to the aggregated market size of its trade partners: small/poor countries protect IPR to get access to advanced economies' markets, while large emerging countries tend to free-ride on rich countries' technology to serve their internal demand. Asymmetric protection of IPR, strict in the North and lax in the South, leads in many cases to a higher level of innovation than universal enforcement. An empirical analysis conducted with panel data covering 112 countries and 45 years supports the theoretical predictions.

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Bibliographic Reference

Auriol, E, Biancini, S and Paillacar, R. 2015. 'Intellectual Property Rights Protection and Trade'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10602