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Journal of International Economic Law 2004 7(2):359-370; doi:10.1093/jiel/7.2.359
© 2004 by Oxford University Press
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DO STRONGER PATENTS INDUCE MORE LOCAL INNOVATION?

Lee G. Branstetter1

1 The School of Business, Columbia University

One of the central arguments advanced by proponents of stronger intellectual property rights (IPRs) systems is that strengthening such systems induces higher levels of innovation by domestic firms. This article reviews several empirical studies undertaken by economists to assess the validity of this claim. Most studies fail to find evidence of a strong positive response by domestic innovators that could be reasonably ascribed to the effects of stronger IPRs. The benefits of stronger IPRs – to the extent that they exist at all – are more likely to come instead from an acceleration in the domestic deployment of advanced technology by the affiliates of foreign firms.


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