Effects of intellectual property rights on imitative ability, competitiveness and unemployment in developing countries
Essentially, the differences in the technology gap between developed and developing nations have led to various needs in protecting technology creation. Intellectual Property Rights (IPRs) protect technological innovation initiated from developed countries, while being imitated in the developing...
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| Format: | Thesis |
| Language: | English |
| Published: |
2020
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/85503/1/SPE%202020%2015%20ir.pdf |
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| Summary: | Essentially, the differences in the technology gap between developed and developing
nations have led to various needs in protecting technology creation. Intellectual Property
Rights (IPRs) protect technological innovation initiated from developed countries, while
being imitated in the developing countries. Compliance to IPRs protection among World
Trade Organisation (WTO) member countries, as stipulated in the agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPS), seems to place pressure on the
countries, particularly developing countries, as these countries heavily rely on the
technology innovated from developed countries.
In this study, three data sets are employed to achieve the three objectives. Specifically,
the first objective of this study is to determine the impact of IPRs protection on imitative
ability. Next, the second objective is to examine the role of IPRs protection in moderating
the effects of FDI inflows on competitiveness, the third objective of this study is to
investigate the relationship between IPRs protection and unemployment in the selected
developing countries.
The first objective of this study was achieved using the dataset derived from 2009 to
2014 among selected developing countries. For the second objective, dataset between
2008 and 2014 was utilised and 41 developing countries were selected. Lastly, the
dataset between 2008 and 2014 was examined across 47 selected developing countries
to meet the third objective. The system GMM estimator was applied for data analysis to
achieve the outlined objectives of this study.
This study draws several significant findings. First, IPRs protection does not weaken the
imitative ability of the selected developing countries. The higher concentration of human
capital accumulation, high FDI inflows and increase intervention from the government
enhance imitative ability. Second, there is positive of moderating effect of IPRs protection on the relationship between FDI inflows and competitiveness in the selected
developing countries. Third, stronger IPRs protection escalates unemployment in these
countries, as evidenced by the positive relationship between the variables.
The findings of this study aid policymakers to have better understanding of the relevance
of maintaining IPRs protection in developing countries. Thus, in order to maintain a
sustainable imitative ability, higher competitiveness and lower unemployment, the
government should maintain an appropriate level of IPRs protection and encourage FDI
inflows to developing countries. Since IPRs protection directly affects imitative ability,
and consequently influences competitiveness as well as unemployment, these three
factors should be appropriately managed in order to achieve high economic growth. It is
recommended that further studies focus on the types of industries, so as to observe the
effects of IPRs protection on these three factors. |
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