(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.
Canadian scholar Jasmin Hristov will present a lecture on paramilitarism, complex type of politically-motivated violence in different parts of Latin America. This presentation will explain paramilitary violence as a tool of economic globalization.
Buena Vista St. Bldg., Aula Canaria Lecture Hall (BV 1.328), Downtown Campus
Richard Peretz,’85, chief financial officer at UPS, will present the keynote address at the Frost Distinguished Lecture Series, presented by the UTSA College of Business.
Business Building (BB 2.06.04), Main Campus
UTSA Police Dept and UTSA Club Jiu-Jitsu offers a new self-defense seminar to teach participants basic skills needed to get out of a physical attack.
UTSA Recreation Center–Mac Gym, Main Campus
The UTSA Department of Philosophy and Classics hosts Michael Wheeler from University of Stirling as its Brackenridge Distinguished Visiting Professor. He will be giving a talk on how creativity works.
H-E-B University Center (HUC 1.102), Main Campus,
The Dept. of Kinesiology, Health and Nutrition and the South Texas Consortium for HIV and STI Research welcomes Dr. Joshua Rosenberger who will discuss his recent work on using innovative HIV-prevention strategies.
University Center (UC 2.02.12), Main Campus
Join the UTSA African American Studies program for a lecture by Gary Bledsoe, President of the Texas NAACP, who specializes in public interest law, employment and civil rights law.
Buena Vista Building (BVB 1.328), Downtown Campus
The UTSA College of Engineering Technology Symposium showcases innovative student projects and research performed across multiple disciplines including engineering, science and business. The public is invited.
H-E-B UC Ballroom (HUC 1.104), Main Campus
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