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Dynamic Analysis of Innovation and Licensing: The Effects of Intellectual Property Rights Protection

Author

Listed:
  • Hitoshi Tanaka

    (Graduate School of Economics, Osaka University)

  • Tatsuro Iwaisako

    (Faculty of Economics, Ritsumeikan University)

  • Koichi Futagami

    (Graduate School of Economics, Osaka University)

Abstract
Licensing is one of the major sources of international technology transfer to developing countries. This paper clarifies how strengthening intellectual property rights (IPRs) affect innovation and licensing by making use of a quality-ladder type of dynamic general equilibrium model. We explore not only the long-run effects but also the short-run effects of the policy by fully examining the dynamic characteristics of the model. The model shows that stronger IPRs promote innovation and technology transfers in both the long run and the short run if IPR protection greatly reduces the negotiation cost of licensing.

Suggested Citation

  • Hitoshi Tanaka & Tatsuro Iwaisako & Koichi Futagami, 2006. "Dynamic Analysis of Innovation and Licensing: The Effects of Intellectual Property Rights Protection," Discussion Papers in Economics and Business 06-06, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:0606
    as

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    References listed on IDEAS

    as
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    4. Ozawa, Terutomo, 1980. "Government Control over Technology Acquisition and Firms' Entry into New Sectors: The Experience of Japan's Synthetic-Fibre Industry," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 4(2), pages 133-146, June.
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    7. Kwan, Yum K. & Lai, Edwin L. -C., 2003. "Intellectual property rights protection and endogenous economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 853-873, March.
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    10. Glass, Amy Jocelyn & Saggi, Kamal, 2002. "Intellectual property rights and foreign direct investment," Journal of International Economics, Elsevier, vol. 56(2), pages 387-410, March.
    11. Jocelyn Glass, Amy & Saggi, Kamal, 2002. "Licensing versus direct investment: implications for economic growth," Journal of International Economics, Elsevier, vol. 56(1), pages 131-153, January.
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    More about this item

    Keywords

    Licensing; Innovation; Intellectual property rights; North-South; Technology transfer;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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