Poyago-Theotoky thanks the Spanish Ministry of Science and Innovation for its financial support (CICYT ECO2008/06191).
R&D PRODUCTIVITY AND INTELLECTUAL PROPERTY RIGHTS*
Article first published online: 19 JUN 2012
© 2012 The Authors. The Manchester School © 2012 Blackwell Publishing Ltd and The University of Manchester
The Manchester School
Volume 81, Issue 3, pages 276–292, June 2013
How to Cite
POYAGO-THEOTOKY, J. and TEERASUWANNAJAK, K. T. (2013), R&D PRODUCTIVITY AND INTELLECTUAL PROPERTY RIGHTS. The Manchester School, 81: 276–292. doi: 10.1111/j.1467-9957.2011.02282.x
Manuscript received 20.8.10; final version received 7.3.11.
- Issue published online: 15 APR 2013
- Article first published online: 19 JUN 2012
We study firms' preferences towards intellectual property rights (IPR) regimes in a North–South context, using a simple duopoly model where a ‘North’ and a ‘South’ firm compete in a third market. Unlike other contributions in this field, we explicitly introduce the South's capability to undertake cost-reducing R&D, but maintain the South's inferiority in using and managing its R&D. In contrast to traditional results, we show that the North may encourage lax IPR protection provided that its South rival's R&D productivity is not too low. In this sense, our results do not support the idea of universal or uniform IPR protection regime.