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Article
Trade-Related Intellectual Property Rights: Industry Variation and Technology Diffusion
Canadian Journal of Economics (2011)
  • Olena Ivus
Abstract
The WTO inspired strengthening of intellectual property rights (IPRs) in developing countries remains highly controversial even more than 15 years after the 1994 TRIPs agreement. This paper assesses how a strengthening of IPRs affects international technology diffusion by altering the volume of high-tech exports into developing countries. A simple North-South general equilibrium model in which industries differ in their imitation rates is developed. Stronger IPRs encourage Northern firms in a wider range of industries to start exporting. Exports in industries with the highest risk of imitation rise, while exports in other industries may fall. International technology diffusion does not necessarily fall with stronger IPRs. More technology diffuses to the South because new high-tech products are introduced in the Southern market. This works against the reduction in technology diffusion caused by limited imitation.
Publication Date
2011
Citation Information
Olena Ivus. "Trade-Related Intellectual Property Rights: Industry Variation and Technology Diffusion" Canadian Journal of Economics, 2011, 44(1), p.201-226.