Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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R&D Investment in Intermediate Goods Industry by Intellectual Property Rights Protection Policies and Policy Implications

지식재산권 보호정책에 의한 중간재 산업 R&D 투자 결정 모형 및 정책 함의

  • 정미경 (성균관대학교 경제학과)
  • Received : 2021.08.07
  • Accepted : 2021.08.29
  • Published : 2021.08.30
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Abstract

This paper examines the effects of intellectual property protection policies on upstream firms' R&D investments in order to derive policy implications in relation to the fostering of the intermediate goods industry. To that end, the dependence on import of intermediate goods and the degree of protection of intellectual property rights are introduced into the model to analyze the effects of R&D investments on the dependence on imports and the effects of intellectual property rights protection policies on the level of R&D investments in order and the social welfare effects are also checked. The policy implications derived in this paper, which used an oligopolistic market model with a vertical specialization structure, are as follows. As R&D investments expand, upstream firm begins to have price competitiveness, the dependence on import of intermediate goods by downstream firm decreases, and social welfare increases. That is, in order to strengthen the independence of the intermediate goods industry, R&D investments by upstream firm should be expanded, and to promote this, the government should strengthen the protection of intellectual property rights.

Keywords

Acknowledgement

This paper was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea in 2018 (NRF-2018S1A5B5A07074117).

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