Intellectual Property Rights and Diaspora Knowledge Networks

This paper studies mechanism through which intellectual property rights (IPR) protection can influence the impact of skilled migration on innovation activities in developing countries. We argue that knowledge acquired by emigrants abroad can flow back to their country of origin through diaspora networks. IPR protection in the sending country magnifies this effect by increasing the size of the innovation sector, thereby allowing diaspora gains to fall on a larger range of workers. Strong IPR enforcement therefore makes it more likely for brain drain to be transformed into brain gain.