Does Weak Intellectual Property Rights Protection Deter Investment in R&D?

Evidence from the tea industry in China

Neil Campbell, Kainan Huang & Shravan Luckraz

Published: September 2012

This article gives an example of an industry where process R&D is not deterred by a lack of Intellectual Property Rights (IPR). We observe that the imitation driven by this lack of IPR acts as a source of competitive pressure on the technological leader who responds by increasing its process R&D. We also find that when IPR are introduced in that industry, firms switch from process to product innovation.

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