• Journal of Korea Trade
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• v.23 no.5
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• pp.118-128
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• 2019

Purpose - This paper examines the international R&D contest in which the extent of intellectual property right (IPR) affects both the size of prize for the winning firm and the extent of positive spillover through cost of firms. Recognizing the possibility of incomplete protection of IPR, the present paper analyzes the effect of changes in the extent of IPR on payoffs to firms and social welfare. Design/methodology - This paper examines coordination of IPRs by countries in economic integration. The paper then develops a general model of international R&D contest with incomplete protection of IPR. An increase in the extent of IPR augments the share of the prize the winning firm can appropriate, while decreasing the positive cost externality. To derive sharper results, the paper considers the cases of linear and fixed spillovers. Findings - Under plausible assumptions, an increase in the IPR augments the payoff to each firm and the aggregate payoffs as well. The paper also shows that the number of firms participating in the R&D contest can be endogenously determined in the two-stage R&D contest. The higher the extent of cost spillover, and the larger the effective prize, the more firms participate in the international R&D contest. Originality/value - Existing studies assume that firms winning the R&D contest enjoy perfect IPR to the output of their R&D activities. This is a very restrictive assumption in that other firms can copy the new products or processes. By allowing for the incompleteness of the IPR, the present paper develops a more realistic model of R&D contest. The novelty of the present paper is to allow for the possibility that the higher extent of IPR increases the prize and decreases positive cost externality at the same time. The findings of the present paper can serve as a basis for government policy toward R&D activities of firms and protection of IPRs.

• Journal of Korea Technology Innovation Society
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• v.11 no.2
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• pp.219-240
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• 2008

This paper aims to suggest a policy for biological resource based on a comprehensive understanding on biological resources. Biological resources are different from traditionally recognized viable organisms (Biodiversity) in ecosystems. Biological resources are culturable and replicable resources of living organisms such as tissues, cells and genes. Moreover, biological resources include human-derived biological materials. Biological resources is not simply a matter of science and technology. Biological resources should be dealt with as national resources. There are many international issues regarding biological resources, such as intellectual property rights (IPRs), safety on handling and distribution, material transfer agreements (MTAs) for mutual benefits and biological standards. Ethical debates are also being raised because biological resources are related with human-derived biological materials. Every nation has tendency to adopt its government policies to strengthen its sovereignty on biological resources and international cooperation. In addition, international linkages are essential for providing enhanced worldwide accessibility to biological resources. Japan has shown several international initiatives in the field of biological resources. Korea has just begun to design appropriate policies for the use and R&D of biological resources. Therefore, this paper suggests the following needs: 1) policy at the national level beyond the interests of researchers, 2) inter-ministerial coordination across government ministries, 3) expansion of scope and size of each BRC (Biological Resource Centers), and 4) building networks and systems such as national information center, representative centers by field, and each BRC.