(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:
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.
This high school student exhibit features images, videos, interviews and writings that the students learned about while participating in "The Will to Adorn: African American Dress and the Aesthetics of Identity."
Institute of Texan Cultures, Hemisfair Campus
UTSA has a greater focus in 2018 to serve the local community. Learn the many opportunities you can get involved.
Student Union, 1st floor corridor, Main Campus
Come meet STEM recruiters in person from companies across the nation that have full-time, part-time and/or internship opportunities.
Convocation Center, Main Campus
The summit is an opportunity to create an open forum for the community to share ideas and perspectives on civic engagement.
H-E-B University Center Ballroom (HUC 1.104), Main Campus
Meet recruiters in person from companies across the nation that have full-time and/or internship opportunities. Professional dress required.
Convocation Center, Main Campus
New exhibit of Latino and Latina artists is curated by Arturo Infante Almeida, art specialist and curator for the UTSA Art Collection. Opening Reception is Feb. 8; exhibit runs through June 10.
Centro de Artes Gallery, 102 S. Santa Rosa, San Antonio
The UTSA commnity is encouraged to get involved in this city-wide initiative to clean up the San Antonio area waterways. Roadsrunners will be cleaning up Maverick Creek on the west side of Main Campus.
Maverick Creek, Main Campus
Ron Ellis conducts the student instrumental ensemble in a free concert that is open to the public.
Arts Building, Recital Hall (ARTS 2.03.02), Main Campus
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