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1. Does Change in Intellectual Property Rights Induce Demand for Skilled Workers? Evidence from India

Author:
Pavel Chakraborthy and Prachi Gupta
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Do incentives to innovate create demand for skilled workers more than proportionately? We study the question using the implementation of the Patent (Amendment) Act in India in 2002 to comply with the Trade-Related Intellectual Property Rights agreement. We find, first, stronger intellectual property protection has a sharper impact on demand for skilled workers for high patentable industries. Demand for skilled workers increased by 0.5%–2.9% for industries that are more patentable. The average compensation for skilled workers went up by 10% in high patentable industries but decreased for unskilled workers by about 2%. Second, the increase in wage inequality can partly be attributed to the increase in wages rather than incentives. Third, the increase in demand for skilled workers is due to both the increase in intensive margin (or price) and extensive margin (number). Fourth, the aggregate effect is completely driven by industries producing intermediate goods and big plants. Finally, the reforms led to a significant reallocation of resources between industries. The high patentable industries invested more in technology adoption, started to produce more product varieties at higher quality, and filed for more product patent claims. Broadly, we demonstrate that stronger intellectual property protection leads to higher wage inequality between industries.
Topic:
Science and Technology, Labor Issues, Intellectual Property/Copyright, and Skilled Labor
Political Geography:
India and Asia

2. A Change in the Winds for Software Piracy

Author:
S. Michael Impink Jr.
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Depending on the industry, piracy either stifles economic growth or fosters innovation. In many technology and pharmaceutical industries, piracy impedes innovation because of its deleterious effect on profits, whereas in the fashion industry, piracy drives participants to produce the latest, trendiest designs. The business strategy of software producers, intellectual property owners, and computer device manufacturers has a substantive impact on piracy, not fully captured in the current literature. My research focuses on how business factors—the competitive landscape of device manufacturers, the evolving strategy of intellectual property owners, and the shift away from traditional licensing models—affect intellectual property rights and software piracy in high-growth countries.
Topic:
Science and Technology, Intellectual Property/Copyright, Piracy, and Business
Political Geography:
United States, China, Asia, and North America

3. How the Next U.S. President Can Contain China in Cyberspace

Author:
Adam Segal and Rob Knake
Publication Date:
01-2017
Content Type:
Journal Article
Journal:
Journal of International Affairs
Institution:
School of International and Public Affairs, Columbia University
Abstract:
When transition planning gets underway in earnest this fall, one of the hardest memos to write will be the outbrief from the current National Security Council (NSC) team on what to do about China’s ongoing campaign of cyber espionage targeting the intellectual property of U.S. companies. While long a focus of both the president’s cyber and China teams, there is little chance that in the coming months the issue is going to be brought to any type of resolution. Instead, the next president will inherit a partially implemented plan that has produced positive results in the short term, but its long-term sustainability remains uncertain. He or she would be wise to follow the playbook left by the Obama administration, with a redoubled focus on the investigation and prosecution of cybercrime. Critics of the administration on this topic generally fall into two camps. One, summed up nicely by the title of a book by Peter Kiernan, is the Becoming China’s Bitch camp.[1] In this view, the United States is so dependent on China that the Chinese can do what they want and there is little Americans can do to stop them. They hold U.S. debt, Americans can’t manufacture anything without them, Chinese students are leaps and bounds smarter than American students, and there are millions more of them studying science and math. The Chinese are strategic, looking around the corner of history and shaping it in their interests. They are playing three-dimensional chess and President Obama has been playing checkers. They put the blame on what they would characterize as Obama’s willingness to “lead from behind.” They then quote Sun Tzu, reference Unrestricted Warfare, and drop the mic.[2] The second view is the Coming Collapse of China camp.[3] In this view, despite an aggressive anti-corruption campaign and a more assertive foreign policy, China is weak, wounded, and dangerous. The Communist Party made a deal with the devil, offering economic growth in exchange for loyalty to the regime. Now, the leadership can’t keep up with their end of the bargain. Growth is slowing, and at a faster pace than the official figures acknowledge. Over investment continues and economic reforms have stalled. Air and water pollution are a drag on the economy and a threat to citizen health. Paranoid about any dissent, the party has tightened restrictions on the Internet and the media and arrested feminists, civil rights activists, and lawyers. One spark could start protests that lead to widespread instability and perhaps the end of Communist Party rule. What’s interesting is that these divergent views of China’s place in the world similarly predict there is little chance that China will cease stealing intellectual property. In the first view, China holds all the cards, and there is simply nothing the United States can do to impose costs and stop the hacking of companies. If China is desperate and dangerous, then it can’t stop stealing technology and business secrets because they are needed to fuel the economy.
Topic:
Science and Technology, Intellectual Property/Copyright, Cybersecurity, and Conflict
Political Geography:
United States, China, Asia, and North America