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Do Stronger Intellectual Property Rights Increase Innovation?

31 Pages Posted: 4 Feb 2014

See all articles by Dalibor S. Eterovic

Dalibor S. Eterovic

Universidad Adolfo Ibañez

Cassandra M. Sweet

affiliation not provided to SSRN

Date Written: February 3, 2014

Abstract

Do stronger intellectual property rights (IPR) increase innovation? Recent decades have seen a global transformation in IPR standards, underpinned by the theory that stronger IPRs spur increased incentives to innovate. This study tests the impact of ever more rigorous IPR systems on innovation through an index of economic complexity of 94 countries from 1965 to 2005. Our results confirm that stronger intellectual property systems engender higher levels of economic complexity. Nevertheless, only countries with an initial above-average level of development and complexity enjoy this effect.

Keywords: innovation, development, intellectual property rights, economic complexity

JEL Classification: 030, 034, P14, Q55, I12

Suggested Citation

Eterovic, Dalibor S. and Sweet, Cassandra M., Do Stronger Intellectual Property Rights Increase Innovation? (February 3, 2014). Available at SSRN: https://ssrn.com/abstract=2390072 or http://dx.doi.org/10.2139/ssrn.2390072

Dalibor S. Eterovic (Contact Author)

Universidad Adolfo Ibañez ( email )

Santiago
Chile

Cassandra M. Sweet

affiliation not provided to SSRN

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