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The Interplay Between Intellectual Property Rights and Total Factor Productivity in Kenya.
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The Interplay Between Intellectual Property Rights and Total Factor Productivity in KenyaBenedictor Cheronoh
Eric Rono Kenya Institute for Public Policy Research and Analysis
KIPPRA Discussion Paper No. 277
2021 ii
The interplay between intellectual property rights and total factor productivity in KenyaKIPPRA in Brief
The Kenya Institute for Public Policy Research and Analysis (KIPPRA) is an autonomous institute whose primary mission is to conduct public policy research leading to policy advice. KIPPRA’s mission is to produce consistently high-quality analysis of key issues of public policy and to contribute to the achievement of national long-term development objectives by positively influencing the decision-making process. These goals are met through effective dissemination of recommendations resulting from analysis and by training policy analysts in the public sector. KIPPRA therefore produces a body of well-researched and documented information on public policy, and in the process assists in formulating long-term strategic perspectives. KIPPRA serves as a centralized source from which the Government and the private sector may obtain information and advice on public policy issues.
Published 2021
© Kenya Institute for Public Policy Research and Analysis
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ISBN 978 9966 817 92 1
The Discussion Paper Series disseminates results and reflections from ongoing research activities of the Institute’s programmes. The papers are internally refereed and are disseminated to inform and invoke debate on policy issues. Opinions expressed in the papers are entirely those of the authors and do not necessarily reflect the views of the Institute.
This paper is produced under the KIPPRA Young Professionals (YPs) programme. The programme targets young scholars from the public and private sector, who undertake an intensive one-year course on public policy research and analysis, and during which they write a research paper on a selected public policy issue, with supervision from senior researchers at the Institute iii
Abstract
Kenya is an innovation-driven country powered by knowledge, creativity, and technology, each of which is fundamentally supported by intellectual property (IP) and intellectual property rights (IPRs) protections. This study uses the World Bank's 2018 Enterprise Development Survey data for Kenya to examine the effect of intellectual property rights on total factor productivity in the manufacturing sector, whose contribution to GDP has been decreasing. It looks at total factor productivity within Kenya’s manufacturing sub-sectors and its determinants. Growth accounting framework provides the estimates for total factor productivity for manufacturing firms in Kenya using a balanced panel data for the year 2007, 2013, and 2018. A second model explores the determinants of total factor productivity with key focus being on intellectual property rights. The results show that the key determinants of total factor productivity were intellectual property rights, research and development, training, quality certification, foreign direct investment, and direct exports. These factors had statistically significant effect on total factor productivity. The study recommends an increase in the uptake of IPR through sensitization and public awareness to protect innovations, combat illicit trade and increase total factor productivity in the manufacturing sector of Kenya.
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