Intellectual property protection and innovation: an inverted-U relationship

Furukawa, Yuichi

doi:10.1016/j.econlet.2010.09.004

Cited by 85 publications

(48 citation statements)

References 28 publications

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“…The optimal IPR literature argues for the existence of an inverted U-shaped curve between the strength of IPR systems and innovation (O'Donoghue & Zweimuller, 2004). Empirical evidence suggests a negative or an inverted U-shaped relationship between strengthening IPR systems and innovation (Allred and Park 2007;Lerner 2009;Furukawa 2010;Gangopadhyay & Mondal 2012;Helpman 1993). Allred and Park (2007) find that strengthening levels of IPR regulation have a negative effect on the innovation output of developing countries.…”

Section: Introductionmentioning

confidence: 99%

“…Hudson and Minea (2013) study this effect using the Ginarte and Park (1997) index together with the level of economic development and also find significant nonlinear effects. Furukawa (2010) argues that, with fairly high costs of innovation, both very weak and very strong IP systems lead to lower innovation, suggesting that in such cases a "moderate" approach is preferable. Strengthening of a weak IPR system incentivises innovation as it enables an IP owner to enhance their innovative activities and appropriate their investment in a safer environment.…”

Section: Introductionmentioning

confidence: 99%

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Intellectual Property Rights and Innovation: A Panel Analysis

Papageorgiadis

Sharma

2015

AMPROC

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We investigate the relationship between intellectual property rights (IPR) and innovation, for a panel of 48 countries between 1998-2011. Prior empirical studies mainly focus on strength of patent regulations largely ignoring the enforcement of such laws in practice. We employ a new index that accounts for the enforcement related component of the patent system and the Ginarte and Park (1997) index of patent regulatory strength. We thus include two crucial elements of a national patent system, the de jure position relating to book law and IPR regulations, and the de facto position relating to IPR enforcement. We consider nonlinearities between IPR and innovation, and we find that both nonlinearities and the enforcement aspect are significant in explaining the relationship between innovation and IPR systems.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Intellectual Property Rights and Innovation: A Panel Analysis

Papageorgiadis

Sharma

2015

AMPROC

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“…Therefore, our model features an inverted-U e¤ect of patent strength on domestic innovation that has been documented in recent empirical studies, such as Lerner (2009) and Qian (2007). 23 In the model, we consider a speci…c sequence of actions by domestic innovators, foreign …rms and domestic imitators. In particular, we assume that the action of domestic innovators is followed by foreign …rms and then imitators.…”

Section: A Simple Model Of Distance To Frontiermentioning

confidence: 99%

Stage-dependent intellectual property rights

Chu

Cozzi

Galli

2014

Journal of Development Economics

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Inspired by the Chinese experience, we develop a Schumpeterian growth model of distance to frontier in which economic growth in the developing country is driven by domestic innovation as well as imitation and transfer of foreign technologies through foreign direct investment. We show that optimal intellectual property rights (IPR) protection is stage-dependent. At an early stage of development, the country implements weak IPR protection to facilitate imitation. At a later stage of development, the country implements strong IPR protection to encourage domestic innovation. Therefore, the growth-maximizing and welfare-maximizing levels of patent strength increase as the country evolves towards the world technology frontier, and this dynamic pattern is consistent with the actual evolution of patent strength in China. We are very grateful to the anonymous Referees and Patrick Francois (the Editor) for their insightful comments that have improved the manuscript signi…cantly. We also would like to thank Elias Dinopoulos, Rachel Gri¢ th, Oleksandr Talavera, Fabrizio Zilibotti, and seminar participants at

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“…What's more, the standardization of system and honesty may also lead to the increasing cost of credit maintenance, and further discourage their enthusiasm of R&D investment. Furukawa (2010) pointed out that the relationship of intellectual property protection in the institutional environment and the technological innovation shows a nonlinear relation of "inverted U". And the continuous perfection of the intellectual property protection system will suppress the initiative of technological innovation.…”

Section: Regression Results Analysismentioning

confidence: 99%

Financing Ecological Environment, Financing Capacity and R&D Investment: An Empirical Study on Listed Companies of New Material Industry in China

Xiong¹,

Geng²

2017

IJEF

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Introducing the concept of financing ecology into the research of new material enterprises' R&D investment, and taking 203 Chinese listed companies of new material industry from 2010 to 2015 as the research objects, this paper explores the relationship between financing ecological environment, new material enterprises' financing ability and R&D investment. The study shows that: Financing ecological environment has significant influence on new material enterprises' R&D investment; Specifically, two sub dimensions of economics and finance have positive effects, while the sub dimension of system and honesty has negative effects; The promotion of financing capacity helps new material enterprises to increase R&D investment; Financing capability plays a positive intermediary role between financing ecological environment and R&D investment. Accordingly, new material enterprises should promote adaptive coevolution between financing ability, R&D funds allocation and financing ecology, and fully use the support of policy system.

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Intellectual property protection and innovation: an inverted-U relationship

Cited by 85 publications

References 28 publications

Intellectual Property Rights and Innovation: A Panel Analysis

Intellectual Property Rights and Innovation: A Panel Analysis

Stage-dependent intellectual property rights

Financing Ecological Environment, Financing Capacity and R&D Investment: An Empirical Study on Listed Companies of New Material Industry in China

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