A Welfare Analysis of Global Patent Protection in a Model with Endogenous Innovation and Foreign Direct Investment

Tanaka, Hitoshi; Iwaisako, Tatsuro; Futagami, Koichi

Discussion Papers In Economics And Business, 2011, 09-24-Rev.

Number of Access:599（2025-10-22 09:58 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/13735

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Title
A Welfare Analysis of Global Patent Protection in a Model with Endogenous Innovation and Foreign Direct Investment
Creator
NRID
1000060171790 1000060171790
CreatorName
Tanaka, Hitoshi
NRID
1000040351316 1000040351316
ORCID
0000-0003-2285-4456 0000-0003-2285-4456
researchmap permalink
iwaisako iwaisako
Scopus Author ID
15622846800 15622846800
CreatorName
Iwaisako, Tatsuro
NRID
1000030199400 1000030199400
CreatorName
Futagami, Koichi
Subject
foreign direct investment
innovation
intellectual property rights protection
welfare analysis
Description
* Revised: [09-24, 2009]
Abstract
This paper constructs a North–South quality-ladder model in which foreign direct investment(FDI) is determined by the endogenous location choice of firms, and examines analytically howstrengthening patent protection in the South affects welfare in the South. Strengthening patent protectionincreases the South's welfare by enhancing innovation and FDI, but it also allows the firmswith patents to charge higher prices for their goods, which decreases welfare. However, the modelshows that the former positive welfare effect outweighs the latter negative effect. Moreover, introducingthe strictest form of patent protection in the South, that is, harmonizing patent protection inthe South with that in the North, may maximize welfare in the South as well as in the North. Further,a similar result can also be obtained in a nonscale effect model.
Publisher
Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University
Source Title
Discussion Papers In Economics And Business
Volume (Issue)
09-24-Rev.
Date of Issued
2011-03
Language
English
Handle URL
https://hdl.handle.net/11094/13735
NCID
AA1160366X
Relation.references
URI
http://www2.econ.osaka-u.ac.jp/library/global/dp/0924R.pdf
Access Rights
metadata only access
Category
ディスカッション／ワーキング・ペーパー DP/WP
Discussion Papers In Economics And Business
Date.Updated
2011-03