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Patents, trade secrets and international technology transfer

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  • Klein, Michael A.

Abstract

I study the impact of intellectual property rights on foreign direct investment and technology transfer in developing countries. I find that strengthening patent protection may stimulate foreign investment, but fails to encourage technology transfer. In contrast, strengthening trade secret protection may achieve both goals. These findings suggest that the standard approach to modeling intellectual property rights in terms of a single dimension obscures important differences in the effect of individual aspects of intellectual property law.

Suggested Citation

  • Klein, Michael A., 2022. "Patents, trade secrets and international technology transfer," Economics Letters, Elsevier, vol. 210(C).
    • Handle: RePEc:eee:ecolet:v:210:y:2022:i:c:s0165176521004419
    DOI: 10.1016/j.econlet.2021.110180
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    References listed on IDEAS

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    1. Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001. "Foreign direct investment and spillovers through workers' mobility," Journal of International Economics, Elsevier, vol. 53(1), pages 205-222, February.
    2. Smarzynska Javorcik, Beata, 2004. "The composition of foreign direct investment and protection of intellectual property rights: Evidence from transition economies," European Economic Review, Elsevier, vol. 48(1), pages 39-62, February.
    3. Branstetter, Lee & Fisman, Ray & Foley, C. Fritz & Saggi, Kamal, 2011. "Does intellectual property rights reform spur industrial development?," Journal of International Economics, Elsevier, vol. 83(1), pages 27-36, January.
    4. Olena Ivus & Walter G Park & Kamal Saggi, 2023. "Patent protection and the composition of multinational activity: Evidence from US multinational firms," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 14, pages 317-345, World Scientific Publishing Co. Pte. Ltd..
    5. Lee Branstetter & Kamal Saggi, 2011. "Intellectual Property Rights, Foreign Direct Investment and Industrial Development," Economic Journal, Royal Economic Society, vol. 121(555), pages 1161-1191, September.
    6. Amy Jocelyn Glass & Kamal Saggi, 2002. "Multinational Firms and Technology Transfer," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 495-513, December.
    7. Dinopoulos, Elias & Segerstrom, Paul, 2010. "Intellectual property rights, multinational firms and economic growth," Journal of Development Economics, Elsevier, vol. 92(1), pages 13-27, May.
    8. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 321-349.
    9. Dan Bernhardt & Vladimir Dvoracek, 2009. "Preservation Of Trade Secrets And Multinational Wage Premia," Economic Inquiry, Western Economic Association International, vol. 47(4), pages 726-738, October.
    10. James J. Anton & Hillary Greene & Dennis A. Yao, 2006. "Policy Implications of Weak Patent Rights," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 1-26, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Han, Bing & Pu, Yuanjie & Wu, Yanqiu, 2023. "How does sustainable energy utilities integration promote green recovery? Case of central and Eastern Europe," Utilities Policy, Elsevier, vol. 83(C).
    2. Sugata Marjit & Krishnendu Ghosh Dastidar & Gouranga Gopal Das, 2022. "Market Size and Number of Firms with New Technology," CESifo Working Paper Series 9934, CESifo.
    3. Lisa Craiut & Constantin Bungau & Tudor Bungau & Cristian Grava & Pavel Otrisal & Andrei-Flavius Radu, 2022. "Technology Transfer, Sustainability, and Development, Worldwide and in Romania," Sustainability, MDPI, vol. 14(23), pages 1-33, November.
    4. Klein, Michael A., 2023. "Trade secret protection, multinational firms and international trade," International Economics, Elsevier, vol. 173(C), pages 325-342.

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    More about this item

    Keywords

    Intellectual property rights; Patents; Trade secrets; Foreign direct investment; Technology transfer;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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