The Strengthening of IPR Protection: Policy Complements
WIPO Journal, Vol. 2, No. 1, pp. 99-122, 2010
Posted: 7 Apr 2011
Date Written: October 1, 2010
The past two decades have witnessed an active period of global reform with respect to policies concerning protection of intellectual property rights (IPRs). This article 1) examines - from an empirical, economic perspective - policies that complement the generally strengthened framework for IPRs in developing countries during the years from 1990 to 2007. 2) This time frame encompasses such international policy developments as the advent of the World Trade Organization’s (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), substantially increased adherence to agreements administered by the World Intellectual Property Organization (WIPO), and negotiation of numerous regional trade accords (RTAs), among other developments. Thus it provides an excellent opportunity to examine the interaction of various policy factors with change in the strength of IPR protection.
The core analytical approach is to consider relationships at the national level between a broad range of policy variables and economic outcomes in the context of strengthened IPRs. A four equation model is specified and estimated using three-stage least squares. From this macro approach, we aim to obtain information about the importance of institutional variables through consideration of developments over time in a panel of countries. Further confirming analysis is conducted using firm-level data to consider the economic performance of firms in light of the policy environment in which they operate. From this micro approach, we aim to obtain information about firm-level incentives and how these incentives eventually transform into tangible resources for the firm. The overall objective of both the macro and the micro exercises is to identify complementary factors operating in conjunction with the protection of IPRs to deliver positive economic outcomes.
The article is organised as follows. It begins with a very brief review of the recent literature and key citations from earlier work. This is followed by a presentation of the basic framework for the model. The empirical results of the macro and micro exercises are presented in the next three sections. This is followed by a conclusion that highlights the main findings. An appendix presents the figure and tables.
Keywords: intellectual property rights, innovation, economic policy
JEL Classification: O31, O34, F43
Suggested Citation: Suggested Citation