The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement

This paper develops a model of heterogeneous producers to examine the economic causes of IPR infringement and its consequences for the welfare of the interest groups and the pricing and adoption of a new technology (i.e., a genetically modified seed) in the context of a small open developing economy...

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Autor principal: Giannakas, Konstantinos
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2001
Materias:
Acceso en línea:https://hdl.handle.net/10568/156576
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author Giannakas, Konstantinos
author_browse Giannakas, Konstantinos
author_facet Giannakas, Konstantinos
author_sort Giannakas, Konstantinos
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper develops a model of heterogeneous producers to examine the economic causes of IPR infringement and its consequences for the welfare of the interest groups and the pricing and adoption of a new technology (i.e., a genetically modified seed) in the context of a small open developing economy. Enforcement of IPRs, and pricing and adoption of the new technology are modeled as a sequential game between the government that enforces the IPRs, a foreign innovating firm that prices the new technology, and the developing country’s producers who make the production and cheating decisions. Analytical results show that complete deterrence of IPR infringement is not always economically optimal. IPR infringement affects the welfare of the interest groups and has important ramifications for the pricing and adoption of the new technology. The quantitative nature of the results depends critically on the existing labeling regime. The analysis also shows that differences in the level of IPR enforcement provide an alternative justification for (and explanation of) differences in the pricing of the new technology in different countries around the world - a strategy adopted by leading innovators in the sector. Finally, the results suggest that if the penalties for IPR infringement under the TRIPs agreement follow the custom of retaliatory sanctions under the GATT, enforcement of IPRs will remain imperfect and the innovators’ ability to obtain value for their biotech traits will still be limited.
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spelling CGSpace1565762025-11-06T06:19:20Z The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement Giannakas, Konstantinos intellectual property rights biotechnology economic aspects plant breeding This paper develops a model of heterogeneous producers to examine the economic causes of IPR infringement and its consequences for the welfare of the interest groups and the pricing and adoption of a new technology (i.e., a genetically modified seed) in the context of a small open developing economy. Enforcement of IPRs, and pricing and adoption of the new technology are modeled as a sequential game between the government that enforces the IPRs, a foreign innovating firm that prices the new technology, and the developing country’s producers who make the production and cheating decisions. Analytical results show that complete deterrence of IPR infringement is not always economically optimal. IPR infringement affects the welfare of the interest groups and has important ramifications for the pricing and adoption of the new technology. The quantitative nature of the results depends critically on the existing labeling regime. The analysis also shows that differences in the level of IPR enforcement provide an alternative justification for (and explanation of) differences in the pricing of the new technology in different countries around the world - a strategy adopted by leading innovators in the sector. Finally, the results suggest that if the penalties for IPR infringement under the TRIPs agreement follow the custom of retaliatory sanctions under the GATT, enforcement of IPRs will remain imperfect and the innovators’ ability to obtain value for their biotech traits will still be limited. 2001 2024-10-24T12:44:40Z 2024-10-24T12:44:40Z Working Paper https://hdl.handle.net/10568/156576 en Open Access application/pdf International Food Policy Research Institute Giannakas, Konstantinos. 2001. The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement. EPTD Discussion Paper 80. https://hdl.handle.net/10568/156576
spellingShingle intellectual property rights
biotechnology
economic aspects
plant breeding
Giannakas, Konstantinos
The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement
title The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement
title_full The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement
title_fullStr The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement
title_full_unstemmed The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement
title_short The economics of intellectual property rights under imperfect enforcement: developing countries, biotechnology, and the TRIPs agreement
title_sort economics of intellectual property rights under imperfect enforcement developing countries biotechnology and the trips agreement
topic intellectual property rights
biotechnology
economic aspects
plant breeding
url https://hdl.handle.net/10568/156576
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