Technology policies

Technology policies can be broadly understood as policies seeking to stimulate innovation or to facilitate the absorption of foreign technologies. The appropriate choice of technology policies constitutes a powerful tool to foster economic growth and development. Enforcement of intellectual property rights (IPR) provides incentives for innovation and facilitates voluntary technology transfers in the form of foreign direct investment (FDI), by limiting the imitation of foreign technology. This dissertation studies the factors that explain research intensity in industrialized countries and optimal IPR choice in less developed countries (LDCs).; Chapter 1 empirically studies the spatial patterns and economic factors that explain the degree of intellectual property protection provided by different countries. Evidence of spatial correlation in IPRs is found. A possible explanation for the spatial dependence is strategic interaction between trading partners in the choice of IPRs. The results suggest the existence of different regimes of spatial association. Contrary to the prediction of most of the models in the IPR literature, large developing countries do not provide stronger protection than small ones.; Chapter 2 analyzes the optimal choice of intellectual property protection in LDCs. Based on the results of chapter 1, LDCs are assumed to choose their intellectual property protection taking into account the strength of IPRs in other LDCs. I also introduce a mechanism that explains why small LDCs may provide strong IPRs, despite the small effect of this policy on innovation rates worldwide. The idea is that, in a world of free trade small LDCs compete by providing strong IPRs to attract foreign multinationals, which will establish export facilities.; Chapter 3 investigates why some countries invest more in research than others. Contrary to a common belief, Japan and the United States are found not to have a comparative advantage, associated with a better quality of researchers, relative to European countries. Rather, a large proportion of the population is engaged in R&D activities because of the high financial rewards to innovation in the American and Japanese markets. In turn, market incentives are associated with market size in terms of GDP and the strength of IPRs.