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Intellectual Property Rights (IPR) regime and innovation in a developing country context : Evidence from the 1986 IPR reform in Korea

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Title Intellectual Property Rights (IPR) regime and innovation in a developing country context
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Sub Title

Evidence from the 1986 IPR reform in Korea

Material Type Articles
Author(English)

Kwon, Seokbeom; Woo, Seokkyun

Publisher

[Sejong, South Korea] : Science and Technology Policy Institute

Date 2017-06
Journal Title; Vol./Issue STI Policy Review:vol. 8(no. 1)
Pages 25
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < Science/Technology
Holding Science and Technology Policy Institute
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Abstract

Intellectual Property Rights (IPR) system is one of the major institutions for incentivizing innovation. How¬ever, a strong IPR regime does not necessarily encourage innovation every time. This is because a variety of factors come into play in configuring the ways the IPR system interacts with the dynamics of innovation. In the present study, we examine whether different degrees of absorptive capacity at the industry level bring about heterogeneous effects of a strong IPR regime on the innovation capability of innovators across dif¬ferent industries in developing country. Using the case of the 1986 IPR reform in Korea, which permitted patenting pharmaceutical products and copyrighting computer programs, we analyze the quality of patents produced by Korean applicants between 1982 and 1991. Our analysis finds no evidence that the IPR reform improved the innovation capability of innovators in the two aforementioned sectors, but rather affected their patenting behavior differently.