patent protection in developing countries and global welfare wto obligations versus flexibilities abstract this paper develops a north south model to evaluate the south s incentive for patent protection when a northern firm s investment in quality enhancing research and development r d is affected by its patent policy the model is used to a evaluate the impact of requiring the south to fulfill its key wto obligation of instituting patent protection and b to address the role of two major flexibilities that wto members enjoy with respect to their patent policies the freedom to implement exhaustion policies of their choosing and the right to use compulsory licensing cl subject to certain stipulations two forces drive the model how much the firm invests in r d and whether or not selling in the south maximizes its global profit cl improves consumer access in the south and can even raise innovation and global welfare provided the south implements patent protection innovation and welfare are higher if the north follows national as opposed to international exhaustion however the south s incentive for patent protection is not necessarily stronger under national exhaustion not only is cl more likely to be used under international exhaustion the welfare gain resulting from its application is also higher relative to that under national exhaustion

estimates of the returns to quality and coauthorship in economic academia salaries of academic economists are studied to determine if individuals receive differential returns to publishing articles of varying quality and to coauthored versus single authored articles estimates based on detailed data and a flexible nonlinear least squares procedure indicate that substantial returns to quality exist and that an individual s return from a coauthored paper with n authors is approximately 1 n times that of a single authored paper

equilibrium parallel import policies and international market structure in a north south vertically differentiated duopoly the analysis in this paper derives equilibrium government policies towards parallel imports by incorporating strategic interaction at the policy setting stage and the product market the model sheds new light on i the effects of parallel import policies on pricing behavior of firms and ii the interdependence of national parallel import policies if demand asymmetry across countries is sufficiently large the north forbids parallel imports to ensure its firm sells in the south thereby generating international price discrimination the south s most preferred market outcome as the equilibrium when demand structures are relatively similar across countries the north permits parallel imports and uniform pricing its most preferred market outcome obtains

regulatory environments and the location decision evidence from the early foreign market entries of new technology based firms new technology based firms ntbfs embarking on a strategy of rapid internationalisation choose foreign market entries that minimise transaction costs and the related risks of failure means to reduce the young firms vulnerability to the appropriation of intellectual capital are particularly important influences on early foreign market choices we explore the effect of the institutional dimension specifically the national regulatory environment on the location choices and the speed of internationalisation by british and german ntbfs we provide evidence that entrepreneurial young firms choose to enter country markets offering better regulatory protection for their intellectual property this decision is moderated by a home regulatory regime bias in contrast we observe that the speed of internationalisation is influenced less by the foreign regulatory regime and more by industry and firm characteristics we also observe that managerial experience influences the location choices of ntbfs facing regulatory hazards

intellectual property rights and the governance of international r d partnerships this paper studies the degree to which country differences in intellectual property rights protection affect the choice of companies for a particular mode of international inter firm r d partnering it focuses on the preference of companies for either an equity joint venture or a contractual partnership we find that international differences in intellectual property rights protection are a significant factor with less secure protection firms choose r d joint ventures rather than contractual partnerships the level of technological change in industries has an inverse effect on the preference for international r d joint ventures

the decision to establish a foreign bank branch or subsidiary an application of binary classification procedures this paper has two purposes first we model a key decision for inter national banks using data on the foreign direct investment fdi behavior of foreign banks in japan and california second we examine the utility of linear discriminant analysis and maximum likelihood logit analysis as statistical techniques for relating a qualitative dependent variable to a vector of inde pendent variables we apply these techniques to the decision by parent banks as to whether or not to have a subsidiary branch in california japan we treat the deci sion as a binary choice based on a consideration of various relevant factors the population for each of the countries consists of those foreign to the host country banks that already have a presence in the country the research ques tion then becomes given that a foreign bank is in the country does the extent of the parent bank s experience internationally and in the host country affect the probability that it will deepen its presence the choice of statis tical tools by which to examine this question gives rise to our methodological concerns

trips trade and technology transfer a north south model of unintentional technology transfer is developed where the stringency of southern patent protection provides the institutional backdrop for a strategic game in a high tech goods market the appropriability regime is set endogenously and combines elements of imperfect southern patent protection with the protection afforded by market made northern technology masking less stringent protection of northern intellectual property can work much like other strategic trade policies therefore developed countries appear to be right in demanding discussion of intellectual property rights in gatt

determinants of patent rights a cross national study abstract this paper presents an index of patent rights for 110 countries for the period 1960 1990 the index is used to examine what factors or characteristics of economies determine how strongly patent rights will be protected the evidence does indicate that more developed economies tend to provide stronger protection but the underlying factors which influence patent protection levels are the country s level of research and development r d activity market environment and international integration which are correlated with its level of development the results qualify however that r d activity influences patent protection levels after a nation s research sector reaches a critical size an implication of this is that to raise patent protection levels in weakly protecting countries it is important to foster a significant research base in those countries and thereby create incentives for protecting patent rights

international banking a survey two distinct sets of issues are involved in the analysis of international banking one set the industrial organization issues centers on the patterns of expansion of foreign branches and subsidiaries of banks headquartered in the united states great britain japan and a few other industrial countries and on the nature of the advantage that these branches and subsidiaries have in relation to their host country competitors the second set the international finance issues involves the role of banks in cross border and cross currency financial flows both from their head offices and from their foreign branches and subsidiaries despite the attention to international banking there are few uniquely international institutions rather international banks are a subset of domestic banks with significant numbers of foreign branches and subsidiaries moreover there are few uniquely international banking activities although foreign exchange trading may seem to be one in many countries most or all foreign exchange trading involves domestic banks with few if any foreign branches the growth of foreign branches and subsidiaries of major banks occurred in two waves the first occurred in the decades before world war i when the war started

on the measurement of product variety in trade product variety plays an important role in the theoretical work on monopolistic competition and trade and recent empirical work has begun to quantify this for aggregate and disaggregate import demands the authors discuss the measurement of product variety in trade using a broad cross section of industrial and developing countries and disaggregating across sectors the authors calculate the export variety of countries in their sales to the united states and relate the export variety indexes to country productivities they confirm that countries with greater product variety in exports also have higher productivity this may be due to their development of and access to these products

licensee technological potential and exclusive rights in international licensing a multilevel model granting of exclusive rights is an important consideration for firms using licensing as a mode of entry into foreign markets as exclusive contracts reduce licensors flexibility in a given market during the term of the agreement by granting exclusivity to a licensee with greater technological potential the exchange partners can increase the potential transactional value of the licensing agreement at the same time a licensee with strong technological potential will increase the threat of transactional hazards due to underinvestment and rent appropriation in this paper we develop and empirically test a model that evaluates the balancing of transactional value and transaction costs in exclusive licensing in particular we identify the conditions under which exclusive contracts are likely to be granted to foreign licensees with strong technological potential empirical results from a multilevel model based on 375 international licensing agreements of us firms in high technology industries during 1995 2008 show that licensees with a stronger technological potential are more likely to be granted exclusive rights in countries with strong intellectual property rights protection and in industries with a high rate of technological change but are less likely to be granted exclusive rights when there is a high degree of overlap between licensor and licensee products

does stronger patent protection increase export variety evidence from us product level data proponents of global intellectual property rights iprs reforms have argued that developing countries weak iprs limit their access to foreign innovative products and technologies central to our understanding of the effects of iprs on product access is the influence of national differences in patent protection on corporate behavior and business strategy of multinational firms using detailed product data on us exports from 1990 to 2000 this research note assesses the impact of strengthening iprs in developing countries on product variety of us exports colonial origin and cross industry variation in patent effectiveness serve to identify the impact the results show that the strengthening of iprs increased exports of new products in patent sensitive industries the expansion in product variety accounted for the entire increase in us exports the findings substantiate claims that ratification of trips by developing countries promotes access to new foreign products and technologies additionally the results demonstrate that patent protection is a significant institutional factor in us firms business decisions over the introduction of new products and processes into a developing country marketplace

collaboration incentives endogenous selection into single and coauthorships by surname initial in economics and management many prior studies suggest that default alphabetical ordering of coauthors in economicsconfers disproportionate professional advantages on those with an early surname initialbecause of the greater prominence it gives to the first author however these studies do notconsider that authors select into coauthorships according to the incentives identified wedevelop a model of endogenous selection into single and coauthorships around the principlethat no one wants to be second author when they expect to provide the larger contribution i e are of higher quality we test it with authorship data from economics with man agement which does not use default alphabetical ordering as a benchmark we predict foreconomics that lower quality authors with an early surname initial would be less desirablecoauthors whereas higher quality authors with a late initial would have a lower desire tocoauthor most desired are early initial authors of high quality who are therefore advan taged in forming high quality collaborations the combined effect predicts citation rankincreases with surname initial for single authored papers and decreases for coauthored we find both effects for economics when compared to management and absolutely ourfindings indicate that part of the advantage enjoyed by early surname initial authors in eco nomics could be due to the higher ability among them having more incentive compatiblecollaborators rather than merely to greater prominence

intellectual property rights licensing and innovation in an endogenous product cycle model abstract we develop a dynamic general equilibrium model of the product cycle to study the effects of stronger intellectual property rights iprs in the south on the incentives of firms in the north to innovate and to license advanced technologies innovation and licensing are random processes requiring resources stronger iprs increase the licensor s share of rents and reduce the costs of licensing contracts thus the returns to both licensing and innovation would rise while additional resources would be available for r d in consequence innovation and technology transfer would rise however the effect of stronger iprs on relative wages between regions is ambiguous

research productivity over the life cycle evidence for academic scientists the relationship between age and the publishing productivity of ph d scientists is analyzed using data from the survey of doctorate recipients national research council and the science citation index the longitudinal nature of the data allows for the identification of pure aging effects in five of the six areas studied life cycle aging effects are present only in particle physics where scientists often speak of being on a religious quest is the indication that scientific productivity is not investment motivated vintage effects are also considered the expectation that the latest educated are the most productive is not generally supported by the data copyright 1991 by american economic association

first author conditions evidence from finance journal coauthorship we study the trend and the author name ordering rule in finance publication using the publication records of 21 core finance journals during the period from 1990 to 2004 we empirically model the underlying factors that affect the alphabetical ordering rule among multi authored finance articles we find that the choice of alphabetical ordering is based on the quality of the article institutional heterogeneity team size and cultural factors the central argument rests upon the need to signal and the importance of signalling within the context of bargaining behaviour among coauthors the probability of choosing alphabetical name ordering rule is associated with high article quality higher ranked institutions smaller research team and the presence of european authors

scholarships citations and salaries economic rewards in economics while substantial attention has been paid to the determinants of academics earnings 5 7 8 14 15 this literature has by implication suggested that the mere fact of having spent more time in the profession and the publication of more scholarly articles and books are the major determinants of salary differences our purpose here is to introduce a new determinant the quality of one s scholarly research measured by the frequency of references to that work as an additional objective measure of productivity we expect that this proxy for the extent of a scholar s influence on the work of other researchers is rewarded by the market in addition to giving a more complete picture of the determination of salaries in academic labor markets our approach should be useful in establishing a better framework for the evaluation of issues of discrimination in such markets than has been presented before 2 9

recognition for group work gender differences in academia abstract how is credit for group work allocated when individual contributions are not observed i use data on academics publication records to test whether demographic traits like gender influence how credit is allocated under such uncertainty while solo authored papers send a clear signal about ability coauthored papers are noisy providing no specific information about each contributor s skills i find that men are tenured at roughly the same rate regardless of coauthoring choices women however are less likely to receive tenure the more they coauthor the result is much less pronounced among women who coauthor with other women

pro market institutions and global strategy the pendulum of pro market reforms and reversals we review the literature analyzing the impact of pro market institutions on firms global strategy we propose that the ideological tension between whether the government or the market should drive economic development results in a pendulum of pro market reforms and reversals that drive changes in firm strategy and performance much progress has been made in the analyses of pro market reforms and their impact on firms international strategies and performance however there is a need to further learn about four areas 1 the concept of pro market institutions in particular the variety of institutional dimensions the measures and the influence of informal institutions on firm strategies 2 the drivers of changes in pro market institutions especially firms influences and the co evolution of firm strategies and institutional changes 3 the implications of changes in pro market reforms for the interactions among integration diversification and internationalization strategies the causality chains connecting institutions and strategies and the reconfiguration of activities globally and 4 the non traditional moderators that alter the impact of pro market institutional dynamics on firms strategies such as country level political systems industry level competitor reactions and individual level managerial capabilities and perceptions

reputational capital and academic pay geoffrey k turnbull i introduction economists continue to have a strong interest in academic labor markets as the steady stream of earnings studies over the past several decades readily attests the academic labor market draws the attention of economists not only because it is a topic of direct personal interest but also because it presents an opportunity to examine general theories of labor markets in a context with which the researcher has intimate experience nonetheless important questions about how the market values research teaching and service remain unanswered to what extent does the market reward quality versus quantity of published research or team production in the form of co authorship furthermore how durable is reputational capital for individuals whose research productivity diminishes during their career ultimately these questions relate in one way or another to the nature of the incentive structure faced by academic economists we provide new evidence concerning the role of research quality co authorship administrative service and teaching performance in the production of reputational capital in addition we explore the question of the durability of reputational capital once some of these activities cease we assume that the quantity and quality of published research largely determines an individual s reputational capital in the external market to help us sort out the separate effects on reputational capital of both the quality and quantity of research activity we measure research quality by both journal quality and career citations employing an interactive quantity quality term a related question concerns the role of team production in building an individual s reputational capital do individuals receive differential returns to publishing single authored versus co authored research papers this is an interesting question in light of the substantial increase in co authorship over the last few decades 1 one explanation of this trend is that the academic market has presented scholars with increasing opportunities for specialization in the production of knowledge and that team production involves the combination of complementary skilled researchers if team production reflects complementarities in the production of research we should observe little difference in the returns to single versus co authored work another explanation is that co authorship involves the combination of substitute skilled researchers so that co authorship presents a way for individuals to reduce their research efforts without reducing their individual measured research output to the extent that co authorshi p represents such substitution the market should fully discount the returns to multiple authored papers in this article we also move beyond identifying the factors that enhance an individual s reputation in the market to study the question of the durability of reputational capital some individuals quit publishing once they are tenured or promoted while others experience lengthy but temporary breaks in their flow of research output we examine the potential penalties associated with gaps in research output providing the first empirical evidence concerning the durability of reputational capital for academic economists in order to ensure that our analysis deals with these issues in a way that is most relevant to a large portion of the market for academic economists we use data from several research universities but restrict the sample frame to a single discipline economics much of the previous work estimating how publications or other factors affect academic salaries typically use data from a single university with earnings equations estimated across disciplines restricting the sample to a single discipline has the additional advantage of reducing potential heterogeneity problems associated with measuring productivity across disciplines in addition our data enable us more thoroughly to explore the empirical issues in the debate since they permit more precise measures of the past and current productivity of individuals engaged in comparable work

the measurement of intellectual property rights protection this research improves upon empirical studies that examine the measurement of intellectual property rights ipr protection prior measures examine only one type of law or lack a component that addresses the actual enforcement of these laws the measure presented here uses three types of ipr laws and enforcement components for them

the location of international financial activity an interregional analysis goldberg m a helsley r w and levi m d 1989 the location of international financial activity an interregional analysis reg studies 23 1 7 this paper examines the determinants of the spatial distribution of financial activity the determinants of the sizes of the financial services sector are estimated using data for a sample of us states although our analysis is limited by the availability of data the results are strong and clear the level of international financial activity is positively and significantly related to per capita income the level of imports and the number of corporate headquarters the results indicate that international trade is intensive in its use of financial services and that financial services tends to be exported along with goods goldberg m a helsley r w et levi m d 1989 la localisation des operations financieres internationales une analyse interregionale reg studies 23 1 7 cet article examine les determinants de la distribution geographique des opera

first author conditions this paper provides a theoretical explanation for the persistent use of alphabetical name ordering on academic papers in economics in a context in which market participants are interested in evaluating the relative individual contribution of authors it is an equilibrium for papers to use alphabetical ordering moreover it is never an equilibrium for authors always to be listed in order of relative contribution in fact we show via an example that the alphabetical name ordering norm may be the unique equilibrium althoug multiple equilibria are also possible finally we charaterize the welfare properties of the noncooperative equilibrium and show it to produce research of lower quality than is optimal and than would be achieved if coauthors were forced to use name ordering to signal relative contribution

the structure of international banking abstract this paper investigates the factors that determine the number and form of foreign banking operations from 60 foreign countries in the united states our equilibrium model of three banking forms representative offices agencies and branches and three explanatory variables export activity merchant banking activity and capital market development explains more than 74 per cent of the variation in numbers of offices across the 60 different foreign countries in addition we identify the equilibrium model of competition among the types of operations that is most consistent with the empirical results jel f33

are weak patent rights a barrier to u s exports abstract this paper assesses whether how and to what extent u s exports are sensitive to national differences in patent rights i estimate bilateral trade equations that account for trade distortions related to patent rights using data on state to country manufacturing exports in 1992 i find that weak patent rights are a barrier to u s exports but only to countries that pose a strong threat of imitation e g china the stronger patent rights required under the wto agreement increase u s exports to these high threat markets alternatively strengthening patent rights in countries that pose a weak threat of imitation reinforces monopoly power and reduces u s exports to these markets

patent rights and innovative activity evidence from national and firm level data global standards of patent protection have been strengthened and harmonized in recent years despite the heated policy debates and theoretical controversies empirical studies of the consequences for innovative activity are scant this paper contributes to the debate by providing an empirical analysis of the effects of patent strength on different aspects of innovative activity namely firm level research and development r d domestic patenting and foreign patenting the analysis employs an updated index of patent rights the results show the complexity of evaluating the effects of patent reform on innovative activity since the effects vary nonlinearly depending on the initial level of patent strength and vary by a country s level of economic development overall for developing economies patent strength negatively affects domestic patent filings and insignificantly affects r d and foreign patent filings for developed economies patent strength positively affects r d and domestic patent filings and negatively affects foreign patent filings after some critical level of patent protection is reached journal of international business studies 2007 38 878 900 doi 10 1057 palgrave jibs 8400306

fame and the fortune of academic economists how the market rewards influential research in economics we analyze the pay and position of 1 009 faculty members who teach in doctoral granting economics departments at fifty three large public universities in the united states using the web of science we have identified the journal articles published by these scholars and the number of times each of these articles has been subsequently cited in published research articles we find that research influence as measured by various measures of total citations is a surprisingly strong predictor of the salary and the prestige of the department in which professors are employed we also examine how coauthorship is rewarded by the market

the effects of the international banking act on domestic bank profitability and risk the passage of the international banking act of 1978 was the first major step towards imposing consistent and uniform federal regulations on the growing number of foreign banks entering the united states prior to this date foreign banks had been subject to a patchwork of state laws of varying degrees of stringency covering their entry expansion and portfolio behavior see white 1982 and walker 1983 the net result of this patchwork of state regulation was that by 1978 foreign banks had developed certain competitive advantages over domestic banks these advantages emanated from the fact that foreign bank branches and agencies i were not required to meet federal reserve determined reserve requirements on liabilities such as large cds and ii they were not subject to federal laws governing interstate banking the 1927 mcfadden act and activity diversification the 1933 glass steagall act and the 1956 bank holding company act including its 1970 amendments however foreign banks were also subject to certain disadvantages compared to domestic banks in particular they were inhibited from entering into retail banking markets by being ineligible for fdic insurance and being denied access to fed services such as check collection and the discount window to eliminate these discrepancies in relative regulation the international banking act iba was introduced in the house of representatives in february 1978 re

how trade related are intellectual property rights abstract there is little empirical evidence about whether differing international levels of patent protection influence trade flows if a nation strengthens its patent laws it could experience higher or lower imports we specify an empirical model in which deviations of bilateral sectoral imports from anticipated levels are related to income trade barriers and patent laws patent regulations in the importing country are corrected for endogeneity through the use of instrumental variables the results of the final equations indicate that increasing patent protection has a positive impact on bilateral manufacturing imports into both small and large developing economies

the impact of patent rights on international trade evidence from canada the extent to which canadian manufacturing exports are sensitive to national differences in patent rights are examined the conclusion is that overall canadians tend to export more to those countries where their patent rights are highly safeguarded stronger patent protection induces canadians to export relatively more to high income countries than to low income countries in addition the effect of stronger patent rights is to increase exports to those countries that pose a strong threat of imitation and to reduce exports to those countries that pose the weakest threat of imitation jel classification f13 o34 impact de la propriete des brevets sur le commerce international resultats pour le canada ce memoire examine jusqu a quel point les exportations manufacturieres canadiennes sont sensibles aux differences dans la propriete des brevets entre pays l etude conclut que les canadiens tendent a exporter davantage vers les pays ou la propriete des brevets est hautement protegee il appert que la plus forte protection de la propriete des brevets tend a faire que les canadiens exportent relativement plus vers les pays a hauts revenus que vers ceux a plus faibles revenus de plus il appert que l effet de la plus forte protection des brevets est d accroitre les exportations vers les pays qui posent une forte menace d imitation et de reduire les exportations vers les pays qui posent la plus faible menace d imitation

do stronger patent rights raise high tech exports to the developing world abstract despite over 20 years of debate the trips agreement remains very contentious this paper evaluates the impact of strengthening patent rights prs in developing countries on developed countries exports over the 1962 2000 period colonial origin is used to isolate exogenous variation in prs the impact is then identified by examining the cross industry difference in sensitivity to prs i find that the increase in prs made in response to the trips agreement added about 35 billion 2000 us dollars to the value of developed countries patent sensitive exports into 18 developing countries this amount is equivalent to an 8 6 increase in these developing countries annual value of patent sensitive imports the increase in the value of exports was driven by a quantity rather than a price increase

international trade in banking services abstract this paper investigates which of the theories of international trade best explains trade in international banking in its various forms branches subsidiaries and representatives strong evidence is found to support the newer economies of scale theories and it is proposed that the foreign exchange and capital markets exhibit declining costs to production it is also discovered that the relaxation of exchange and capital controls by potential host countries diminishes the incentives of banks to seek direct representation

an institution based view of global ipr history leveraging the use of history to advance international business research this article focuses on the crucial debate over intellectual property rights ipr between the united states and china ironically during the 19th century the united states was not a leading ipr advocate as it is today but was a leading ipr violator developing an institution based view of ipr history we identify three underlying theoretical mechanisms that help to explain ipr in the two countries path dependence long term processes and institutional transitions we argue that both the us refusal to protect foreign ipr in the 19th century and the current chinese lack of enthusiasm to meet us ipr demands embody rational responses to their respective situations however given long term processes with intensifying isomorphic pressures institutional transitions in favor of better ipr protection are quite possible finally going above and beyond these two countries we draw on the ipr history in over ten other countries to develop a more globally generalizable framework which in turn contributes to the key question of how history matters

intellectual property protection and the industrial composition of multinational activity in a north south model with endogenous fdi we examine the impact of southern ipr protection on the mode and industrial composition of international technology transfer a novel feature of the model is that due to technological reasons industries differ with respect to their susceptibility to imitation in equilibrium licensing occurs in industries where the risk of imitation is low and fdi where it is of intermediate magnitude stronger iprs in the south i alter the industrial composition of multinational activity towards licensing at the expense of fdi ii reduce local imitation and iii increase licensing and to a lesser extent fdi

intellectual property rights product complexity and the organization of multinational firms this paper studies how the intellectual property right ipr regime in destination countries influences the way multinationals structure the international organization of their production in particular we explore how multinationals divide tasks of dierent complexities across countries with dierent levels of ipr protection the analysis studies the decision of firms between procurement from related parties and outsourcing to independents suppliers at the product level it also breaks down outsourcing into two types by distinguishing whether or not they involve technology sharing between the two parties we combine data from a french firm level survey on the mode choice for each transaction with a newly developed complexity measure at the product level our results confirm that firms are generally reluctant to source highly complex goods from outside firm boundaries by studying the interaction between product complexity and the ipr protection we obtain that i for technology sharing outsourcing iprs promote outsourcing of more complex goods to a destination country by guaranteeing the protection of their technology ii for non technology related outsourcing iprs attract the outsourcing of less complex products that are more prone to reverse engineering and simpler to decodify and imitate

trade related intellectual property rights industry variation and technology diffusion the wto inspired strengthening of intellectual property rights iprs in developing countries remains highly controversial even more than 15 years after the 1994 trips agreement this paper assesses how a strengthening of iprs aects international technology diusion by altering the volume of high tech exports into developing countries a simple north south general equilibrium model in which industries dier in their imitation rates is developed stronger iprs encourage northern rms in a wider range of industries to start exporting exports in industries with the highest risk of imitation rise while exports in other industries may fall international technology diusion does not necessarily fall with stronger iprs more technology diuses to the south because new high tech products are introduced in the southern market this works against the reduction in technology diusion caused by limited imitation