Browsing by Subject "Intellectual property rights"

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    An economic evaluation of the roots and fruits of intellectual property Rights for U.S. horticultural Plants.
    (2010-05) Drew, Jennifer
    Most prior studies have failed to empirically reveal any significant economic or innovation effects of intellectual property rights for plant products. Perhaps this is because these studies focused on the wrong crops (i.e., wheat, soybeans, and corn) or were unduly circumscribed in the types of intellectual property under consideration (i.e., U.S. plant variety protection and utility patents). This study's focus is on the economic effects of intellectual property rights for horticultural crops in the United States which have garnered the lion's share of the plant protection. Highlighting differences between the horticultural and agricultural sectors, the first part of this study analyzes the roots of intellectual property rights for plants and associated plant markets and their evolution in the United States. This analysis reveals large structural changes in the pattern of intellectual property protection for plants in the United States which reflects advances in plant related science and technologies, market changes, as well as policies and practices affecting plant-related intellectual property. These structural changes include changes in the form of protection being sought—be it plant patents, utility patents, or plant variety protection certificates; the agent (e.g., individuals, firms, universities, or government agencies) seeking protection; and the plant species being protected. Ornamental plants account for a large and growing share of the U.S. plant economy whether measured as a share of property rights issued or the real value of plant products produced. The notable increase in plant patent applications in the horticultural sector in recent years is paralleled by a rapidly growing effort to brand high–valued crops and garner value by protecting of cultivar innovations with other forms of legal protection such as trademarks. The second part of this study focuses on the fruits of intellectual property rights for ornamental plants. Ornamental plants account for much of the intellectual property rights for plants, thus providing a potentially more fertile area in which to examine the price consequences of plant-related intellectual property rights. A large, unique, purpose built data set is used to identify the sources of differences in the wholesale price of ornamental plant varieties. A hedonic pricing model was adapted to the particulars of the ornamental plant sector and the data. The hedonic decomposition of plant prices made it possible to identify varietal price premiums associated with plant patent and trademark attributes. After controlling for a host of plant attributes that affect plant prices, an average price premium of 23 percent was identified for plants protected by plant patents compared with those with no such protection. Likewise, the average value of the trademark premium was 2.5 percent, indicating that the branding value of the name trademark is much lower. Surprisingly, when these two plant intellectual properties were used together on one cultivar, premiums were nearly 7 percent lower than if neither were used, a result which raises questions for further research. The premiums for the plant patent and name trademark vary between different firms and between different species particularly between herbaceous perennial and woody species and specializing firms.
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    International trade in genetically modified-sensitive industries: a cross-country analysis.
    (2011-01) Da'ar, Omar Bundid
    This dissertation analyzes the effects of non-traditional endowments (R&D stock and biotech land) on trade of genetically-modified sensitive industries. The study also explores the effects of differences in institutional endowments (intellectual property rights and regulatory regimes) on genetically modified sensitive industries. In particular, I ask, do the non-traditional endowments confer comparative advantage to a country in exporting to the rest of the world (ROW)? I pursue this hypothesis by looking at whether a country's true non-traditional endowments (R&D and biotech land) correspond with net export of embodied non-traditional endowments. I employ the factor-content model of the Heckscher-Ohlin-Vanek (HOV) as the underlying theoretical framework. The empirical implementation and method include examination of this relationship via non-parametric and parametric methods using 2006 cross-section data of three-digit level of the Standard International Trade Classification (SITC). Further, I examine the causal relationship between non-traditional endowments and countries' bilateral trade of genetically modified-based industries. In addition, I analyze the effect of institutional measures of policy on bilateral trade in GMO-based industries and account for ways in which these institutional factors interact with non-traditional endowments (R&D and biotech land). I employ the Gravity model of international trade to examine these relationships. Findings show countries with higher non-traditional endowments than the world average have embodied net exports of these endowments. In other words, this finding is an indication that such countries have revealed comparative advantage in goods that make intensive use of these factors. In particular, results show that the causal relationship between trade in genetically modified-sensitive products and biotech land of a country is informative. In aggregate and subaggregates trade, the biotech land factor consistently shows positive and statistically significant parameter estimates indicating that indeed it confers comparative advantage. Accordingly, the relationship between trade in GMO-based industries and GMO land is genuinely causal rather than just correlation. This implies that the variation of trade in GMO-based industries is not attributable to either unmeasured characteristics or the traditional endowments. However, the relationship between trade in genetically modified-sensitive industries and R&D stock is less definitive. R&D stock confers comparative advantage in one (fats or vegetable related) of the four main subaggregates while it neither confers comparative advantage nor comparative disadvantage in others. There is evidence that R&D stock (knowledge capital) does not fit the traditional immobility assumption. Knowledge capital spillovers may take place. Thus, the importance of knowledge capital is not showing up in the statistical results. I found mixed evidence on the effect of institutional endowments (relevant regulatory regimes and intellectual property rights) on bilateral trade in GMO-based industries. Using different levels of data aggregations (for comparability and concordance) and estimation methods (for robustness checks), the results showed that strengthening of patent protection in the destination country relative to the source country reduces exports of genetically modified-sensitive products. This demonstrates a market power effect where strengthening intellectual property protection grants monopoly power to economic agents of importing country relative to exporting country. Finally, results show that even when there are marked regulatory differences and policies, there is little evidence of diversion of trade in GMO-sensitive industries. The dissertation is organized as follows. Chapter 1 provides an introduction and overview of GMO-intensive industries. This chapter also summarizes patterns of international data on trade in GMO-intensive industries, R&D, GMO land use, and policies including regulatory regimes and intellectual property rights. Chapter 2 then analyzes determinants of trade in GMO-intensive industries using the Heckscher-Ohlin model. This analysis focuses on determinants of a country's trade with the rest of the world. Chapter 3 analyzes determinants of trade in GMO-intensive industries using the Gravity model. This analysis focuses on the determinants of a country's bilateral trade with each trading partner. Chapter 2 and 3 both focus on the role of the non-traditional endowments as determinants of trade. These non-traditional endowments include: (1) the knowledge stock of countries, (2) the land endowments of countries including the GMO component of land, (3) regulatory regimes of countries related to GMO policies, and (4) the intellectual property right policies of countries. I refer to the knowledge stock variable as an R&D stock through much of the dissertation. I also refer to the two policy variables as `institutional endowments' throughout the dissertation. Chapter 4 then provides a conclusion, discussion of policy implications of the research, elucidates the limitations, and proposes areas of further research.