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| Author: | Diwan, I. Rodrik, D. |
| Title: | Patents, appropriate technology, and North-South trade |
| Journal: | Journal of International Economics
1991 : FEB, VOL. 30:1/2, p. 27-47 |
| Index terms: | PATENTS TECHNOLOGY TRADE PRICING STRATEGY WELFARE |
| Language: | eng |
| Abstract: | Incentives of North and South to provide patent protection to innovating firms are investigated. A model is constructed assuming that all innovations take place in the North. Pricing strategy of a firm that has developed and patented a certain technology is analysed. Effects of increased Northern and Southern patent protection, of change in relative market size, and of change in tastes are considered. Welfare analysis is presented. Numerical simulations lead to several results. The two regions must compete with each other to encourage the development of technologies most suited to their needs. South is motivated to protect patent rights. |
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