Intellectual property rights and knowledge sharing across countries

Purpose – The purpose of this paper is to integrate the empirical and game theoretical approaches to address the strategic interactions among countries in choosing their optimal levels of intellectual property rights (IPRs), and to identify how these countries can reach an efficient and equitable equilibrium.Design/methodology/approach – Because countries' decisions on which IPR standards and protections to implement are interrelated, the authors apply game theory to characterize the scenarios before and after the 1994 Agreement on Trade‐related Intellectual Property Rights (TRIPS) involving developed and developing countries.Findings – The model shows that the pre‐TRIPS equilibrium is comprised of high‐income (H‐I) developed countries which choose a strong IPR protection while the middle‐income (M‐I) and low‐income (L‐I) developing countries choose a weak IPR standard. For countries to move from such an equilibrium to the uniformly strong IPR regime under TRIPS, it is necessary for the H‐I countries to c...

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