Product differentiation, research and development and IPR enforcement Nabin, Munirul, Visser, Robin and Sgro, Pasquale 2017, Product differentiation, research and development and IPR enforcement, International review of economics and finance, In Press, pp. 1-19. Attached Files Name Description MIMEType Size Downloads Title Product differentiation, research and development and IPR enforcement Author(s) Nabin, Munirul Visser, Robin orcid.org/0000-0002-1450-730X Sgro, Pasquale orcid.org/0000-0002-1450-730X Journal name International review of economics and finance Season In Press Start page 1 End page 19 Total pages 19 Publisher Elsevier Place of publication Amsterdam, The Netherlands Publication date 2017 ISSN 1059-0560 Keyword(s) Product Quality Hotelling Price Competition MNE and IPR Enforcement Summary This paper uses a spatial Hotelling price competition model with quadratic transportation costs to analyse the nature of firm’s competition with respect to level of product differentiation (i.e. product design) and process R&D in the presence of strong and weak intellectual property rights (IPR) enforcement. We consider two possible cases: (i) a foreign firm becomes an exporting firm or (ii) a foreign firm becomes a Multinational Enterprise (MNE). We find that, in both cases the optimum level of product differentiation is negatively related to Process R&D. We also allow the local firm to imitate MNE’s product differentiation level as well as its Process R&D; and we find that, under spatial Hotelling price competition, the local firm has no incentive to imitate the MNE’s product design, i.e. the level of product differentiation of the MNE, at Nash Equilibrium. Compared to the behaviour of a social planner, the MNE provides more differentiated goods than a social planner and when the local firm does not do undertake any R&D activities but can imitate the Process R&D of the MNE, a social planer has no incentive to enforce strong IPR at the optimum level. Language eng Field of Research 140104 Microeconomic Theory 140209 Industry Economics and Industrial Organisation 1402 Applied Economics 1502 Banking, Finance And Investment Socio Economic Objective 970114 Expanding Knowledge in Economics HERDC Research category C1 Refereed article in a scholarly journal ERA Research output type C Journal article Copyright notice ©2017, Elsevier Persistent URL http://hdl.handle.net/10536/DRO/DU:30090822 Document type: Journal Article Collection: Department of Economics Related Links Link Description Connect to Elements publication management system Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Wed, 25 Jan 2017, 12:39:48 EST Thu, 26 Jan 2017, 04:01:24 EST Mon, 30 Jan 2017, 07:33:28 EST Wed, 01 Feb 2017, 05:05:10 EST Mon, 13 Feb 2017, 12:00:34 EST Mon, 13 Feb 2017, 12:02:41 EST Sat, 15 Apr 2017, 02:39:02 EST Fri, 21 Apr 2017, 13:49:51 EST Filtered Full Citation counts:   Cited 0 times in TR Web of Science Cited 0 times in Scopus Search Google Scholar Access Statistics: 42 Abstract Views, 1 File Downloads  -  Detailed Statistics Created: Wed, 25 Jan 2017, 12:39:48 EST

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