Does Weak Intellectual Property Rights Protection Deter Investment in R&D?: Evidence from the tea industry in China
, 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.