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Intellectual property rights and diaspora knowledge networks: Can patent protection generate brain gain from skilled migration?
Author(s) -
Naghavi Alireza,
Strozzi Chiara
Publication year - 2017
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/caje.12284
Subject(s) - diaspora , intellectual property , enforcement , brain drain , business , emigration , channel (broadcasting) , industrial organization , international trade , economics , political science , economic growth , law , computer science , telecommunications
This paper studies the 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 facilitates this channel by increasing returns to skills and encouraging workers to move into the innovation sector. An expansion of the innovation sector allows diaspora knowledge to be absorbed by a larger range of workers. Strong IPR enforcement therefore makes it more likely for brain drain to be transformed into brain gain.