Patents and Technology Transfer Through Trade and the Role of Regional Trade Agreements

13 Pages Posted: 8 Mar 2016 Last revised: 1 Aug 2016

Keith E. Maskus

University of Colorado at Boulder - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 1, 2016

Abstract

Regional trade agreements can have powerful impacts on technology transfer (TT), primarily through their effects on trade in high-technology goods and services, foreign direct investment (FDI), and licensing, all of which are key channels of information diffusion. In that context, regional trade agreements (RTAs) and mega-regionals such as the TPP embody considerable promise for direct expansion of TT, if primarily within the agreement. Moreover, recent econometric evidence largely finds that each of these flows responds positively to strengthened patent laws and other intellectual property rights (IPR), though this conclusion must be conditioned on a variety of factors (Maskus, 2012). These basic observations suggest that there could be an important complementarity between the formation of trade agreements and their IPR standards, a critical question that has not yet attracted much investigation.

Suggested Citation

Maskus, Keith E., Patents and Technology Transfer Through Trade and the Role of Regional Trade Agreements (March 1, 2016). Working Paper, East-West Center Workshop on Mega-Regionalism - New Challenges for Trade and Innovation. Available at SSRN: https://ssrn.com/abstract=2745455

Keith E. Maskus (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-492-7588 (Phone)
303-492-8960 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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