Foreign patent rights and high-tech exports: evidence from Taiwan

Wen‐Hsien Liu · Ya‐Chi Lin

37 citations0/0 files storedApplied Economics

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Intellectual Property and Patents Intellectual Property Law Global trade and economics

Abstract

This paper conducts a consecutive pooled data analysis from 1989 to 2000 to investigate the relationship between foreign patent rights (FPRs) and the exports of three high-tech industries in Taiwan: the semiconductor, the information and the communication equipment industries. Following Smith's model setup, empirical results indicate that both market expansion and market power effects do exist in Taiwan's case. In addition, this paper proposes a new hypothesis in which the importing country may exhibit a stronger R&D ability than the exporting country, a case that has not been considered in earlier empirical work. Finally, a test is made to determine if a TRIPS (Trade-related Intellectual Property Rights) agreement has any impact on the FPRs–exports relationship, and no evidence is found of a structural change after the implementation of TRIPS.

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References

1979A Theoretical Foundation for the Gravity Equation.1985The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence 1989The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade 1997Determinants of patent rights: A cross-national study 1994The Importance of Patent Scope: An Empirical Analysis 1992Innovation, Imitation, and Intellectual Property Rights 1995How trade-related are intellectual property rights?1990The Heckscher-Ohlin-Samuelson Model, The Linder Hypothesis and the Determinants of Bilateral Intra-Industry Trade

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2012Does patent harmonization impact the decision and volume of high technology trade?2009DO INTELLECTUAL PROPERTY RIGHTS MATTER TO TAIWAN'S EXPORTS? A DYNAMIC PANEL APPROACH 2010Intellectual Property and Developing Countries: A review of the literature 2012Intellectual property rights and the margins of international trade 2009Intellectual property rights and U.S. information goods exports: the role of imitation threat

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