Working Paper: CEPR ID: DP4713
Authors: Gilles Saint-Paul
Abstract: This Paper discusses a number of issues in the context of the debate on intellectual property in less developed countries (LDCs). It starts by discussing the consequences of IP enforcement in LDCs for global innovation and welfare in poorer countries. It then considers the costs and benefits of IP enforcement for a small, open LDC, abstracting from global issues. Finally, it discusses the protential merits of an industrial policy based on open source software. The analysis suggests that the view that it is best for LDCs to free-ride on the global IP regime is overblown.
Keywords: comparative advantage; growth; innovation; intellectual property; piracy
JEL Codes: F12; F13; O30; O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Enforcing IPRs in LDCs (O34) | Higher innovation rates (O39) |
| Higher innovation rates (O39) | Economic growth in LDCs (O10) |
| Not enforcing IPRs (O34) | Lower innovation rates globally (O39) |
| Lower innovation rates globally (O39) | Negative impact on LDCs' growth (F69) |
| Enforcing IPRs in LDCs (O34) | Enhanced global innovation (O36) |
| Failure to enforce IPRs (O34) | Foregone innovation and growth (O39) |
| Cumulative effect of multiple LDCs not enforcing IPRs (O34) | Reduced global market size for innovations (F61) |
| Reduced global market size for innovations (F61) | Depressed number of goods being invented (O39) |