The patent policy of an economy is a significant policy tool required for the technological development of a country through stimulating domestic innovation and facilitating technology transfer. The empirical literature, however, does not support these hypotheses in their entirety. This paper proposes an alternative perspective of the channels through which developing countries gain from patent rights. According to the proposed framework, developing countries go through two stages of technological development, namely duplicative imitation (DI) and creative imitation (CI) before becoming independent innovators. These stages based on the evolution of product technology determine an economy’s innovative nature, its capabilities to absorb transferred technology, and the influence of the patent rights on primary channels of gains. The results of the empirical investigation conducted on a panel of 47 developing countries from 1980–2000 reveal the existence of two stages of technological development amongst developing economies. The results further show differences in the responsiveness of domestic innovation to patent protection of DI and CI economies. Technology transfers to DI and CI economies through foreign direct investment and foreign patenting also react differently to the patent regime.
|Keywords:||Patents, Economics of Innovation, Technology Transfer, Developing Countries|
Assistant Professor, School of Humanities and Social Sciences, Indian Institute of Technology Indore, Indore, Madhya Pradesh, India
Professor of Economics, Department of Humanities and Social Sciences, Kanpur, Uttar Pradesh, India
There are currently no reviews of this product.Write a Review