Thursday, September 03, 2015

UTSA scholar encourages developing countries to strengthen intellectual property rights

Hamid Beladi

Hamid Beladi

Share this Story

(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.

 

 

Did You Know?

Football standouts make Roadrunner history

For Ashaad Mabry and Triston Wade, football is not just a passing fancy. Both players were part of the UTSA football program almost from the beginning. When UTSA opens the 2015 season Thursday at Arizona, it will be the first time the Roadrunners take the field without them. But Mabry and Wade will still be playing football; their uniforms will just be a different color.

Mabry, a defensive tackle from San Antonio's MacArthur High School, was an honorable mention All-Conference USA selection his final two seasons as a Roadrunner and second among the team's defensive linemen with 49 tackles last year. Wade, a defensive back from Tyler, was the most decorated player in school history. He was a semifinalist for the 2014 Jim Thorpe Award – for the nation's top defensive back – a three-time all-conference honoree and two-year team captain who set a school record of 293 tackles in his career. Both men had outstanding college careers that allowed them to make UTSA history.

Did you know? Mabry and Wade both agreed to terms as undrafted free agents with the New Orleans Saints and Seattle Seahawks, respectively, becoming the first UTSA players to move to the professional ranks.

Read More »
Events
Sept. 7, All Day

Labor Day Holiday

All campuses will be closed for the Labor Day holiday.
All Campuses

Sept. 9, 5:30 p.m.

Architecture Connects

The UTSA College of Architecture, Construction and Planning’s 2015-16 Speaker Series begins Sept. 9 with Toshiko Mori, the Robert P. Hubbard Professor in the Practice of Architecture at the Harvard University Graduate School of Design and principal of Manhattan-based Toshiko Mori Architect.
Buena Vista Building Aula Canaria (BV 1.328), Downtown Campus

Sept. 12, 11 a.m.

UTSA Football vs. Kansas State

Cheer on the UTSA Roadrunners at their home-opener against the Kansas State Wildcats.
Alamodome, 100 Montana St.

Sept. 15, 5:30 - 7 p.m.

Changing the Conversation: Recovery Works!

As part of National Recovery Month, a panel of substance abuse practitioners and members of the recovery community will discuss issues related to substance abuse treatment and recovery.
Durango Building 1.124 (DB 1.124), Downtown Campus

Sept. 24, 6 p.m.

The Power of Story in the Landscape of Memory and Identity

The UTSA College of Education and Human Development will host award-winning children’s author and illustrator Yuyi Morales. Morales will share personal stories that have influenced her work as an author and illustrator.
Buena Vista Building Aula Canaria (BV 1.328), Downtown Campus

Oct. 5, 9 a.m. - 3 p.m.

Civic Engagement Summit

This summit is an opportunity to showcase and share the variety of community engagement activities of UTSA students, faculty, and staff. The summit is currently accepting proposals for poster presentations. The Call for Posters deadline is Friday, Sept. 11.
University Center Denman Room (2.01.28), Main Campus


Other Calendars
» UTSA Events | » Academic | » Institute of Texan Cultures

Submit an Event


Meet a Roadrunner

Teja Guda '08 is an engineer on the cutting edge

Biomedical engineering alum and professor is working to regenerate tissue

UTSA's Mission

The University of Texas at San Antonio is dedicated to the advancement of knowledge through research and discovery, teaching and learning, community engagement and public service. As an institution of access and excellence, UTSA embraces multicultural traditions and serves as a center for intellectual and creative resources as well as a catalyst for socioeconomic development and the commercialization of intellectual property - for Texas, the nation and the world.

UTSA's Vision

To be a premier public research university, providing access to educational excellence and preparing citizen leaders for the global environment.

UTSA's Core Values

We encourage an environment of dialogue and discovery, where integrity, excellence, inclusiveness, respect, collaboration and innovation are fostered.

Connect with UTSA News

       


Related Links

Back to Top

2015 © The University of Texas at San Antonio  |  Produced by University Communications and Marketing