Intellectual Property Rights and International R&D Competition

June 1, 2001

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Format: Chicago

Stefania Scandizzo. Intellectual Property Rights and International R&D Competition, (USA: International Monetary Fund, 2001) accessed November 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines a country's incentives for intellectual property rights (IPR) protection in a global trading environment. There is a time inconsistency problem intrinsic to IPR protection: ex ante strong protection is warranted to promote innovation, but once discovery takes place there is an incentive to lower protection. The sub optimal but time consistent policy involves an insufficient level of protection and, therefore, of innovation. In more technologically advanced economies reputational considerations may be sufficient to maintain strong protection. Otherwise a commitment mechanism, such as participation in the World Trade Organization, or, more controversially, some form of bilateral punishment, may be used.

Subject: Competition, Consumption, Economic sectors, Financial markets, Foreign corporations, Income, National accounts, Personal income, Tax incentives, Technology

Keywords: Commitment IPR Policy, Competition, Consumer surplus, Consumption, Foreign corporations, Global, Home government, Imitation, Income, Innovation, Intellectual property rights, IPR policy, IPR protection, IPR regime, Monopoly profits, Time inconsistency, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/081
Stock No:

WPIEA0812001
ISBN:

9781451850369
ISSN:

1018-5941

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