Title: The effect of software piracy on research and development intensity at the country level: do developed countries and emerging economies suffer the same impact?

Authors: Peerayuth Charoensukmongkol

Addresses: International College, National Institute of Development Administration, 10th Floor, Narathip Pongprapan Building, 118 Moo 3, Serithai Road, Klong-Chan, Bangkapi, Bangkok, 10240, Thailand

Abstract: This study investigated the impact of software piracy on research and development intensity at the country level. While the software piracy problem is harmful to innovation in developed countries, it could benefit innovation in emerging economies because the chance to gain access to a wide array of software packages at substantially lower costs encourage more people to develop the technical skills required for innovative activities. The hypotheses were tested using samples from 22 advanced economies and 11 emerging economies from 2003 to 2007. The results suggested that although software piracy negatively affected research and development expenditures, its impact was moderated by the level of economic development. The author also found evidence that software piracy tended to be associated positively and strongly with the percentage of science and engineering graduates in the emerging economies. This could explain why innovation in these countries has not suffered much from the software piracy problem.

Keywords: software piracy; research and development; R&D intensity; innovation; science graduates; engineering graduates; emerging economies; country level; national level; R&D expenditure; economic development.

DOI: 10.1504/GBER.2014.063064

Global Business and Economics Review, 2014 Vol.16 No.3, pp.253 - 268

Received: 13 Sep 2012
Accepted: 17 Jan 2013
Published online: 29 Jul 2014 *

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