Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74226 
Year of Publication: 
2005
Series/Report no.: 
Nota di Lavoro No. 18.2005
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
This paper analyzes welfare implications of protecting intellectual property rights (IPR) in the framework of TRIPS for developing countries (South) through its impact on innovation, market structure and technology transfer. In a North-South trade environment, the South sets its IPR policy strategically to manipulate multinationals’ decisions on innovation and location. Firms can protect their technology by exporting or risk spillovers by undertaking FDI to avoid tariffs. A stringent IPR regime is always optimal for the South as it triggers technology transfer by inducing FDI in less R&D-intensive industries and stimulates innovation by pushing multinationals to deter entry in high-technology sectors.
Subjects: 
Intellectual property rights
Technology transfer
Multinational firms
Foreign direct investment
North-South trade
JEL: 
O34
F23
F13
L13
O32
L11
O38
Document Type: 
Working Paper

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