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UTSA scholar encourages developing countries to strengthen intellectual property rights

Hamid Beladi

Hamid Beladi

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(Oct. 25, 2013) -- After several years of research in the field of international trade and intellectual property rights, Hamid Beladi, UTSA economics professor and associate dean of research for the UTSA College of Business, and his co-authors have determined that if a developing country strengthens its intellectual property rights policies, its local firms will be in a better position to specialize in and accept international research and development (R&D) contracts.

This finding fills a gap in the international trade policy literature by offering a new perspective on the importance of intellectual property rights affecting R&D activities in developing countries. The current literature discusses only the need for developing countries to strengthen their intellectual property rights to support local innovation, economic growth and technology.

In recent decades, increasing globalization has created an environment in which businesses rely on suppliers located in different countries to assist them with different stages of production. Today's multinational firms are under increasing pressure to reduce their R&D costs. In the same way that a wireless phone company based in the United States might outsource all or part of its customer service to a developing country to save costs, large multinational firms now are outsourcing the R&D phase of their new innovations to local firms in developing countries.

In the pharmaceutical industry, for example, the largest multinationals, such as Merck, Eli Lilly and Johnson & Johnson, are partnering with firms in developing countries such as India, China and Brazil to carry out sophisticated drug research and clinical testing.

The information technology industry also has witnessed the rapid expansion of offshore R&D outsourcing. Many multinational IT firms, including Dell, Motorola and Philips, are not only purchasing wireless phones from Asian developers but also many of the newest services available for mobile use.

"The question we wanted to answer was how these local firms could make adjustments to their intellectual property rights policies to be better prepared to work with multinational firms without getting taken advantage of," said Beladi. "Ultimately, our theory supports both the local and multinational firms in this era of internationalization of R&D activities."

Beladi and his co-authors suggest that strengthening intellectual property rights can have the following benefits on developing countries:

  • Both local firms and multinationals will begin to specialize in one stage of R&D, creating a "specialization effect"
  • Local firms that once were considered imitators or a threat to multinational firms will switch their position and become innovators or subcontractors of multinationals.
  • It increases the chance multinationals will subcontract R&D with local firms. This "subsidizing effect" is beneficial to both local and multinational firms.
  • Local firms will move into a better bargaining position and multinational firms are able to save significant costs by contracting their R&D to local firms.
  • Multinationals may increase their Foreign Direct Investment in a developing country by adding offshore R&D subsidiary companies within the developing country.

The researchers' findings will be forthcoming in a leading academic journal. Beladi hopes to be able to use the findings to influence policymakers in developing countries.

Nationally ranked and recognized, the UTSA College of Business is accredited by AACSB International and enrolls 5,200 students. The college is dedicated to raising its academic profile to become one of the best business schools.

 

 

Events
Feb. 9, 11 a.m. - 1 p.m. & 6 - 9 p.m.

Rowdy Gras 2016

The UTSA community is invited to attend the 3rd annual Rowdy Gras celebration! This year Rowdy Gras includes a daytime event from 11 a.m. -1 p.m. with a free food tasting and music on the UC Paseo. The main event takes place from 6 - 9 p.m. in the UC Lawn. The event includes free food, live jazz music, activities and giveaways.
University Center Paseo & Lawn, UTSA Main Campus

Feb. 10, 5:30 p.m.

UTSA College of Architecture, Construction and Planning 2015-16 Speaker Series

The UTSA College of Architecture, Construction and Planning’s 2015-16 Speaker Series continues with Dana Cuff, Ph.D., a professor of architecture and urbanism at the University of California, Los Angeles. In her talk, Cuff will discuss new forms of “studio” and new types of practices. Free and open to the public.
Aula Canaria Lecture Hall (BV 1.328), UTSA Downtown Campus

Feb. 13, 10 a.m. - 5 p.m.

29th annual Asian Festival - Year of the Monkey

The UTSA Institute of Texan Cultures invites Texas and Texans to the Asian Festival. What began as a traditional family reunion for the Chinese New Year has expanded to include other Asian communities and participants, showcasing their unique culture and traditions.
The UTSA Institute of Texan Cultures

Feb. 13, 1 p.m.

2016 Interdisciplinary Studies Colloquium

Join the UTSA Department of Interdisciplinary Learning and Teaching in celebrating interdisciplinary inquiry at the 2016  Interdisciplinary Studies Colloquium.  The colloquium will include a panel of faculty and recent doctoral graduate and a showcase of the best IDS undergraduate inquiry projects of the year 2015. The event is free and open to the public.
Business Building (BB 2.06.04), UTSA Main Campus

Feb. 17, 5:30 p.m.

CACP Speaker Series continueswith Cesar Pelli

The UTSA College of Architecture, Construction and Planning (CACP) welcomes renowned architect Cesar Pelli as part of the CACP’s 2015-16 Speaker Series. Pelli is founder and Senior Principal of the New Haven, Conn. firm Pelli Clarke Pelli Architects. In his talk, “Becoming an Architect,” Pelli will present and discuss projects that were critical steps in his career.
Buena Vista Theater (BV 1.326), Downtown Campus

Feb. 23, 5:30 p.m.

African-American Social Welfare Pioneers Responding to Community Needs

The UTSA College of Public Policy presents the Dean's Distinguished Lecture Series featuring Dr. Iris Carlton-LaNey, Professor of the School of Social Work at the University of North Carolina-Chapel Hill. Dr. Iris Carlton LaNey will speak to the UTSA community about the role and impact of African-Americans in the social work profession.
Buena Vista Theater (BV 1.326), Downtown Campus

Feb. 23, 5:30 p.m.

African-American Social Welfare Pioneers Responding to Community Needs

The UTSA College of Public Policy presents the Dean's Distinguished Lecture Series featuring Dr. Iris Carlton-LaNey, Professor of the School of Social Work at the University of North Carolina-Chapel Hill. Dr. Carlton-LaNey will speak to the UTSA community about the role and impact of African-Americans in the social work profession.
Buena Vista Theater (BV 1.326), Downtown Campus

Feb. 23, 7 p.m.

Presentation and Book Signing with Luis Carlos Montalvan

Please join us for a presentation and book signing by Luis Carlos Montalván (Fmr. Capt., USA), author of the New York Times Bestseller Until Tuesday and the international award-winning childrens book Tuesday Tucks Me In. His books will be available for purchase at the UTSA Bookstore. This event is free and open to the public.
Southwest Room (DB 1.124), Downtown Campus

Feb. 25, 6 p.m.

12th Annual Black Heritage Gala

The 12th Annual Black Heritage Gala is a formal event which includes a student performance, keynote remarks by Michael Brown, an award presentation, dinner and dancing. Tickets are $10 for UTSA students and $15 for all other guests. Tickets are on sale now at Roadrunner Express. Contact (210) 458-4770 for more information.
H-E-B University Center Ballroom, Main Campus

Feb. 27, 9 a.m.

Cultural Contrasts in Latin America

The UTSA Institute of Texan Cultures will host a free workshop focusing on teaching Latin American culture and geography for students seeking their teacher certification. The workshop includes free resources for teaching Latin American subject matter as well as presentations on language, identity, music, geography, and political and developmental history, and a special educators’ tour of the museum’s Los Tejanos exhibit. Free with registration.
The UTSA Institute of Texan Cultures (ITC 3.01.02)


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