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Title:Intellectual property rights, technology transfer and exports in developing countries PDF Logo
Authors:Yang, Lei
Maskus, Keith E.
Issue Date:2008
Series/Report no.:CESifo working paper 2464
Abstract:We develop a model to analyze one mechanism under which stronger intellectual property rights (IPR) protection may improve the ability of firms in developing countries to break into export markets. A Northern firm with a superior process technology chooses either exports or technology transfer through licensing as its mode of supplying the Southern market, based on local IPR policy. Given this decision, the North and South firms engage in Cournot competition in both markets. We find that stronger IPR would enhance technology transfer through licensing and reduce the South firm's marginal production cost, thereby increasing its exports. Welfare in the South would rise (fall) if that country has high (low) absorptive capacity. Excessively strong IPR diminish competition and welfare, however. Adding foreign direct investment as an additional channel of technology transfer sustains these basic messages.
Subjects:Intellectual property rights
technology transfer
exports
JEL:F14
L13
O1
O34
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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