(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.
UTSA researchers are exploring matter at the atomic level with Helenita. It's one of the most powerful microscopes in the world, with the ability to operate near the theoretical limit of resolution. At 9 feet, 2 inches tall and weighing more than two tons, Helenita can dissect almost anything. With Helenita's resolution, researchers can study particles atom by atom to see how they behave.
That's critical in developing nanotechnology that will help diagnosis early-stage breast cancer or make helmets that are uber strong. Moreover, the detail that Helenita provides will allow nanotechnology researchers to create new therapies and treatments to fight a wide range of human diseases.
Did you know? Helenita can magnify a sample 20 million times its size, which would make a strand of human hair the size of San Antonio.
Join AIA San Antonio’s Women in Architecture group for their networking and happy hour event, where all design professionals are welcome.
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Tobin Center for the Performing Arts, 100 Auditorium Circle
Discover resources and strategies for teaching Tejano history and culture and get a special educator's tour of the new long-term exhibit, Los Tejanos.
Institute of Texan Cultures, 801 E. César E. Chávez Blvd.
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Institute of Texan Cultures, 801 E. Cesar E. Chavez Blvd.
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Hyatt Regency Hill Country Resort & Spa, 9800 Hyatt Resort Dr.
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