Bidding for Brains: Intellectual Property Rights and the International Migration of Knowledge Workers
We introduce international mobility of knowledge workers into a model of Nash equilibrium IPR policy choice among countries. We show that governments have incentives to use IPRs in a bidding war for global talent, resulting in Nash equilibrium IPRs that can be too high, rather than too low, from a global welfare perspective. These incentives become stronger as developing countries grow in size and wealth, thus allowing them to prevent the 'poaching' of their 'brains' by larger, wealthier markets.
The authors thank Arthur Fishman, seminar participants at the Chinese University of Hong Kong, and participants at the conference on Globalization and the Brain Drain at Bar-Ilan and Hebrew Universities, December 9-11, 2008, for helpful comments. We also thank two anonymous referees for their useful insights. Fanqing Ye provided excellent research assistance. Kuhn thanks UC Berkeley's Center for Labor Economics for their generous hospitality during the research on this project. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
McAusland, Carol & Kuhn, Peter, 2011. "Bidding for brains: Intellectual property rights and the international migration of knowledge workers," Journal of Development Economics, Elsevier, vol. 95(1), pages 77-87, May. citation courtesy of