Innovation and imitation: effects of intellectual property rights in a product-cycle model of skills accumulation

Hung-Ju Chen

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes the effects of stronger intellectual property rights (IPR) protection in the South on innovation, imitation, the pattern of production and wage inequality based on a North-South product-cycle model with foreign direct investment (FDI) and skills accumulation. This quality-ladder model features innovative R&D in the North and imitative R&D in the South. Two types of innovation are considered: innovation targeting all products and innovation targeting only imitated products. We find that for both types of innovation, strengthening IPR protection reduces the innovation rate and raises the imitation rate. There is also an increase in the proportion of Northern unskilled labor and a decrease in Northern wage inequality. As for the pattern of production, the extent of FDI may decrease while the extent of Northern production may increase.

Keywords: Imitation; IPR; R&D; Skills; Wage inequality. (search for similar items in EconPapers)
JEL-codes: F12 F23 O31 (search for similar items in EconPapers)
Date: 2015-04, Revised 2015-04
New Economics Papers: this item is included in nep-cse, nep-ino, nep-ipr, nep-pr~, nep-knm and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: INNOVATION AND IMITATION: EFFECTS OF INTELLECTUAL PROPERTY RIGHTS IN A PRODUCT-CYCLE MODEL OF SKILLS ACCUMULATION (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65745

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