Intellectual Property Regimes, Innovative Capabilities, and Patenting in Korea

Abstract

In this paper, we empirically investigate whether and to what extent

major changes in IPR contributed to subsequent upgrading of innovative

capabilities and patenting in Korea. We found that major IPR changes in

Korea in the 1980s led to the big increase in patenting, thereby

supporting the friendly court hypothesis. Especially, the trend of

substance patent applications by local residents seems to suggest that

the IPR change in Korea encouraged local firms to focus more on

developing innovative capabilities and patenting more actively. Based on

the Korean experience, we offer an insight into the recent debate on the

relationship between IPR and economic development in developing

countries.