Patent Protection, Southern Innovation and Welfare in a North–South Trade Model

26 Pages Posted: 14 Mar 2013

See all articles by Arijit Mukherjee

Arijit Mukherjee

University of York

Uday Bhanu Sinha

Indian Statistical Institute

Date Written: April 2013

Abstract

In a North–South trade model, we analyse the implications of southern patent protection on southern innovation, profits and welfare. Southern patent protection may make the northern firm worse off and the southern firm better off by increasing the southern firm's incentive for innovation and affecting the nature of competition in the world market. The impact of southern patent protection on a country's welfare and on world welfare depends on the cost of southern innovation and the degree of product substitutability. We provide important insights into the outcomes of international negotiations regarding patent enforcement in the southern countries.

Suggested Citation

Mukherjee, Arijit and Sinha, Uday Bhanu, Patent Protection, Southern Innovation and Welfare in a North–South Trade Model (April 2013). Economica, Vol. 80, Issue 318, pp. 248-273, 2013, Available at SSRN: https://ssrn.com/abstract=2233211 or http://dx.doi.org/10.1111/ecca.12005

Arijit Mukherjee (Contact Author)

University of York ( email )

Heslington
University of York
York, YO10 5DD
United Kingdom

Uday Bhanu Sinha

Indian Statistical Institute ( email )

203 B. T. Road
Kolkata, West Bengal 700108
India

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