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EFFECTS OF STRENGTHENING INTELLECTUAL PROPERTY RIGHTS IN NEWLY INDUSTRIALIZED ECONOMIES: EVIDENCE FROM TAIWAN’S 1994 PATENT REFORM
Author(s) -
YANG CHIHHAI
Publication year - 2008
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2007.00095.x
Subject(s) - intellectual property , empirical evidence , economics , business , property rights , ticket , international economics , international trade , political science , philosophy , computer security , epistemology , computer science , law , microeconomics
Does strengthening intellectual property rights (IPR) in terms of a longer patent life induce more patents? This article investigates the responses of high‐technology firms to Taiwan’s 1994 patent reform. Empirical analyses reveal that firms’ patenting propensity rose gradually before patent reform and showed an increase after patent reform, tending to support the viewpoint that stronger IPR can induce more patents. However, this cannot lead to lasting effect. Furthermore, patenting capability can serve as the access ticket for potential entrants to a science park under the circumstance of stronger IPR protections. These new entrants are found to have a better post‐entry performance in patenting relative to the incumbents in the short run. ( JEL O14, O31)