Intellectual property rights and quality improvement

• 成果类型: Article
• 署名作者: Glass, Amy Jocelyn; Wu, Xiaodong
• 署名单位: Texas A&M University System; Texas A&M University College Station; University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2005.08.002
• 发表日期: 2007
• 页码: 393-415
• 关键词: innovation; Foreign direct investment; Intellectual property rights; product cycles

摘要

This paper explores why theories about the effects of intellectual property rights (IPR) protection on foreign direct investment (FDI) and innovation have reached mixed conclusions. In our model, Northern firms innovate to improve the quality of existing products and may later shift production to the South through FDI. Southern firms may then imitate the products of multinationals. We find that imitation can increase FDI and innovation for quality improvements, whereas the opposite occurs when innovators develop new varieties. Hence, stronger IPR protection, by reducing imitation, may shift innovation away from improvements in existing products toward development of new products. (C) 2006 Elsevier B.V. All rights reserved.