Bidding for Brains: Intellectual Property Rights and the International Migration of Knowledge Workers

Abstract

We introduce international mobility of knowledge workers into a model of Nash equilibrium IPR policy choice among countries.We show that governments have incentives to use IPRs in a bidding war for global talent, resulting in Nash equilibrium IPRs that can be too high, rather than too low, from a global welfare perspective.These incentives become stronger as developing countries grow in size and wealth, thus allowing them to prevent the 'poaching' of their 'brains' by larger, wealthier markets.

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