Intellectual Property Rights and Foreign Direct Investment: A Welfare Analysis

Hitoshi Tanaka () and Tatsuro Iwaisako
Additional contact information
Hitoshi Tanaka: Faculty of Economics, Hokkai-Gakuen University

No 13-15-Rev, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper examines how intellectual property rights (IPR) protection affects innovation and foreign direct investment (FDI) using a North-South quality-ladder model incorporat- ing the exogenous and costless imitation of technology and subsidy policies for both R&D and FDI. We show that for the interior steady state to be stable, either R&D or FDI sub- sidy rates must be positive. Our findings also indicate that strengthening IPR protection promotes both innovation and FDI. Moreover, a strengthening of IPR protection can also improve welfare if the initial IPR protection in the South is weak and the R&D subsidy rate is not too high.

Keywords: foreign direct investment; innovation; intellectual property rights protection (search for similar items in EconPapers)
JEL-codes: F43 O33 O34 (search for similar items in EconPapers)
Pages: 61 pages
Date: 2013-07, Revised 2013-11
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int, nep-ipr, nep-pr~ and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1315R.pdf (application/pdf)

Related works:
Journal Article: Intellectual property rights and foreign direct investment: A welfare analysis (2014)
Working Paper: Intellectual Property Rights and Foreign Direct Investment: A Welfare Analysis (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1315r

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().