[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v52y2023i6s0048733323000434.html
   My bibliography  Save this article

In the name of TRIPS: The impact of IPR harmonisation on patent activity in Latin America

Author

Listed:
  • Arza, Valeria
  • López, Andrés
  • Montes-Rojas, Gabriel
  • Pascuini, Paulo
Abstract
We analyse the effect of country-specific regulatory changes consistent with mandates included in the Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement on patenting activities in Latin America (LA) with the aim of contributing to the ongoing debate on patent regimes, innovation and development. TRIPS implied tight negotiations between developed and developing countries. By analysing national legislation on IPR in 36 countries, we build a variable that captures when each country exhibits “the spirit of TRIPS”, which may occur before or after signing TRIPS. We follow two goals: i) to assess whether the impact of changing regulation was different in LA in contrast to developed countries; ii) to analyse specifically the impact on patent activities of residents and non-residents in LA in contrast to developed countries. Our results show that regulatory changes aligned with TRIPS increased patent activities in LA more than in developed countries, but only by non-residents. This is consistent with the political economy argument stating that the international agenda on intellectual property rights was pushed by large multinational corporations headquartered in developed countries as part of their globalisation strategies. Our results are also consistent with the economics of innovation literature that suggests that stronger patent regimes only have positive effects on innovation after some national income threshold is attained.

Suggested Citation

  • Arza, Valeria & López, Andrés & Montes-Rojas, Gabriel & Pascuini, Paulo, 2023. "In the name of TRIPS: The impact of IPR harmonisation on patent activity in Latin America," Research Policy, Elsevier, vol. 52(6).
    • Handle: RePEc:eee:respol:v:52:y:2023:i:6:s0048733323000434
    DOI: 10.1016/j.respol.2023.104759
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733323000434
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2023.104759?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
    4. Hudson, John & Minea, Alexandru, 2013. "Innovation, Intellectual Property Rights, and Economic Development: A Unified Empirical Investigation," World Development, Elsevier, vol. 46(C), pages 66-78.
    5. Kenneth Guang-Lih Huang & Xuesong Geng & Heli Wang, 2017. "Institutional Regime Shift in Intellectual Property Rights and Innovation Strategies of Firms in China," Organization Science, INFORMS, vol. 28(2), pages 355-377, April.
    6. Lo, Shih-tse, 2011. "Strengthening intellectual property rights: Experience from the 1986 Taiwanese patent reforms," International Journal of Industrial Organization, Elsevier, vol. 29(5), pages 524-536, September.
    7. Josh Lerner, 2002. "Patent Protection and Innovation Over 150 Years," NBER Working Papers 8977, National Bureau of Economic Research, Inc.
    8. Schneider, Patricia Higino, 2005. "International trade, economic growth and intellectual property rights: A panel data study of developed and developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 529-547, December.
    9. Josh Lerner, 2002. "150 Years of Patent Protection," American Economic Review, American Economic Association, vol. 92(2), pages 221-225, May.
    10. Walter G. Park & Douglas C. Lippoldt, 2008. "Technology Transfer and the Economic Implications of the Strengthening of Intellectual Property Rights in Developing Countries," OECD Trade Policy Papers 62, OECD Publishing.
    11. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    12. Pedro Roffe, 2010. "Intellectual Property, Development Concerns and Developing Countries," Chapters, in: Julio Faundez & Celine Tan (ed.), International Economic Law, Globalization and Developing Countries, chapter 14, Edward Elgar Publishing.
    13. Gamba, Simona, 2017. "The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector," World Development, Elsevier, vol. 99(C), pages 15-27.
    14. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-660, November.
    15. Brent B Allred & Walter G Park, 2007. "Patent rights and innovative activity: evidence from national and firm-level data," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 878-900, November.
    16. Vicente German-Soto & Joana Cecilia Chapa Cantú, 2018. "Structural change in the international patenting level: the TRIPs agreement's role," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 10(2), pages 131-158.
    17. Carolyn Deere-Birkbeck, 2010. "Developing Countries in the Global IP System Before TRIPS: The Political Context for the TRIPS Negotiations," Chapters, in: Carlos M. Correa (ed.), Research Handbook on the Protection of Intellectual Property under WTO Rules, chapter 2, Edward Elgar Publishing.
    18. Sun, Jinyun & Maksimov, Vladislav & Wang, Stephanie Lu & Luo, Yadong, 2021. "Developing compositional capability in emerging-market SMEs," Journal of World Business, Elsevier, vol. 56(3).
    19. Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2014. "Stage-dependent intellectual property rights," Journal of Development Economics, Elsevier, vol. 106(C), pages 239-249.
    20. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99, April.
    21. Roffe, Pedro & Santa Cruz, Maximiliano, 2006. "Los derechos de propiedad intelectual en los acuerdos de libre comercio celebrados por países de América Latina con países desarrollados," Comercio Internacional 4416, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    22. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 321-349.
    23. Walter G. Park, 2007. "Chapter 9 Intellectual Property Rights and International Innovation," Frontiers of Economics and Globalization, in: Intellectual Property, Growth and Trade, pages 289-327, Emerald Group Publishing Limited.
    24. Sweet, Cassandra Mehlig & Eterovic Maggio, Dalibor Sacha, 2015. "Do Stronger Intellectual Property Rights Increase Innovation?," World Development, Elsevier, vol. 66(C), pages 665-677.
    25. Robert Wolfe, 2009. "The WTO Single Undertaking as Negotiating Technique and Constitutive Metaphor," Journal of International Economic Law, Oxford University Press, vol. 12(4), pages 835-858, December.
    26. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    27. Carsten Fink & Keith E. Maskus, 2005. "Intellectual Property and Development : Lessons from Recent Economic Research," World Bank Publications - Books, The World Bank Group, number 7443.
    28. Jean-Frédéric Morin & Omar Serrano & Mira Burri & Sara Bannerman, 2018. "Rising Economies in the International Patent Regime: From Rule-breakers to Rule-changers and Rule-makers," New Political Economy, Taylor & Francis Journals, vol. 23(3), pages 255-273, May.
    29. Kenneth C. Shadlen, 2011. "The Politics of Patents and Drugs in Brazil and Mexico: The Industrial Bases of Health Policies," Chapters, in: Kenneth C. Shadlen & Samira Guennif & Alenka Guzmán & Narayanan Lalitha (ed.), Intellectual Property, Pharmaceuticals and Public Health, chapter 7, Edward Elgar Publishing.
    30. Charles Clift, 2010. "Why IPR Issues Were Brought to GATT: A Historical Perspective on the Origins of TRIPS," Chapters, in: Carlos M. Correa (ed.), Research Handbook on the Protection of Intellectual Property under WTO Rules, chapter 1, Edward Elgar Publishing.
    31. Shadlen, Ken, 2005. "Policy Space for Development in the WTO and Beyond: The Case of Intellectual Property Rights," Working Papers 15577, Tufts University, Global Development and Environment Institute.
    32. Suma Athreye & Lucia Piscitello & Kenneth C. Shadlen, 2020. "Twenty-five years since TRIPS: Patent policy and international business," Journal of International Business Policy, Palgrave Macmillan, vol. 3(4), pages 315-328, December.
    33. Yi Qian, 2007. "Do National Patent Laws Stimulate Domestic Innovation in a Global Patenting Environment? A Cross-Country Analysis of Pharmaceutical Patent Protection, 1978-2002," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 436-453, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Wantao & Yu, Xiang & Yang, Wei, 2024. "Is worldwide patent protection converging? A cross-country index of patent protection strength 1990–2020," Technology in Society, Elsevier, vol. 76(C).
    2. Yang, Wei & Wang, Xueke, 2024. "The impact of patent protection on technological innovation: A global value chain division of labor perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    3. Viglioni, Marco Túlio Dinali & Calegario, Cristina Lelis Leal & Aveline, Carlos Eduardo Stefaniak & Ferreira, Manuel Portugal & Borini, Felipe Mendes & Bruhn, Nádia Campos Pereira, 2023. "Effects of intellectual property rights on innovation and economic activity: A non-linear perspective from Latin America," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 359-371.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2023. "Intellectual property rights protection and trade: An empirical analysis," World Development, Elsevier, vol. 162(C).
    2. Gnangnon, Sèna Kimm, 2023. "The Least developed countries' TRIPS Waiver and the Strength of Intellectual Property Protection," EconStor Preprints 271537, ZBW - Leibniz Information Centre for Economics.
    3. Yang, Wei & Wang, Xueke, 2024. "The impact of patent protection on technological innovation: A global value chain division of labor perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    4. Gamba, Simona, 2017. "The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector," World Development, Elsevier, vol. 99(C), pages 15-27.
    5. Su, Zhongfeng & Wang, Chenfeng & Peng, Mike W., 2022. "Intellectual property rights protection and total factor productivity," International Business Review, Elsevier, vol. 31(3).
    6. Pamela J. Smith & Sebastian J. Anti, 2022. "How does TRIPs compliance affect the economic growth of developing countries? Application of the Synthetic Control method," The World Economy, Wiley Blackwell, vol. 45(12), pages 3873-3906, December.
    7. Richard Pomfret & Keith Maskus, 2014. "The New Globalisation of Intellectual Property Rights: What's New This Time?," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 54(3), pages 262-284, November.
    8. Sharma, Abhijit & Sousa, Cristina & Woodward, Richard, 2022. "Determinants of innovation outcomes: The role of institutional quality," Technovation, Elsevier, vol. 118(C).
    9. Hu, Xiaotian & Yin, Xiaopeng, 2022. "Do stronger intellectual property rights protections raise productivity within the context of trade liberalization? Evidence from China," Economic Modelling, Elsevier, vol. 110(C).
    10. Ming Liu & Sumner LaCroix, 2011. "The Impact of Stronger Property Rights in Pharmaceuticals on Innovation in Developed and Developing Countries," Working Papers 201116, University of Hawaii at Manoa, Department of Economics.
    11. Neves, Pedro Cunha & Afonso, Oscar & Silva, Diana & Sochirca, Elena, 2021. "The link between intellectual property rights, innovation, and growth: A meta-analysis," Economic Modelling, Elsevier, vol. 97(C), pages 196-209.
    12. Anja, Breitwieser & Neil, Foster, 2012. "Intellectual property rights, innovation and technology transfer: a survey," MPRA Paper 36094, University Library of Munich, Germany.
    13. Hudson, John & Minea, Alexandru, 2013. "Innovation, Intellectual Property Rights, and Economic Development: A Unified Empirical Investigation," World Development, Elsevier, vol. 46(C), pages 66-78.
    14. Iftekhar Hasan & Fahad Khalil & Xian Sun, 2017. "The Impacts of Intellectual Property Rights Protection on Cross-Border M&As," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-35, September.
    15. Bhattacharya, Sourav & Chakraborty, Pavel & Chatterjee, Chirantan, 2022. "Intellectual property regimes and wage inequality," Journal of Development Economics, Elsevier, vol. 154(C).
    16. Gnangnon, Sèna Kimm, 2023. "The least developed countries' transitional exemption in the TRIPS agreement and the strength of intellectual property protection," Information Economics and Policy, Elsevier, vol. 65(C).
    17. Bronwyn H. Hall, 2014. "Does patent protection help or hinder technology transfer?," Chapters, in: Sanghoon Ahn & Bronwyn H. Hall & Keun Lee (ed.), Intellectual Property for Economic Development, chapter 2, pages 11-32, Edward Elgar Publishing.
    18. Iftekhar Hasan & Fahad Khalil & Xian Sun, 2017. "The Impacts of Intellectual Property Rights Protection on Cross-Border M&As," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-35, September.
    19. Demir, Caner, 2016. "Do Technology Transfer and IPR Spur Domestic Innovation?: An International Panel Data Analysis," MPRA Paper 76693, University Library of Munich, Germany.
    20. repec:zbw:bofrdp:2017_017 is not listed on IDEAS
    21. Chen, Wantao & Yu, Xiang & Yang, Wei, 2024. "Is worldwide patent protection converging? A cross-country index of patent protection strength 1990–2020," Technology in Society, Elsevier, vol. 76(C).

    More about this item

    Keywords

    Patent rights; TRIPS; Latin-America; Developing countries; Multinational corporations; Political economy of IPR;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:52:y:2023:i:6:s0048733323000434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.