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Patent rights protection and Japanese foreign direct investment

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  • Ushijima, Tatsuo

Abstract

This paper estimates the link between Japanese foreign direct investment (FDI) and the host country's patent rights protection (PRP) in 1985–2004. Regressions performed on data that are aggregated in a variety of ways identify a positive and significant link that is concentrated in countries with a high innovative (imitative) ability and technology-intensive industries. Firm-level logistic regressions show that the link is stronger for firms that depend more on patents to protect innovations than their industry peers. These patterns lend strong support to the argument that PRP and FDI are correlated across countries because the strengthening of PRP ameliorates investors’ concerns about the spillover of proprietary technology.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 42 (2013)
Issue (Month): 3 ()
Pages: 738-748

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Handle: RePEc:eee:respol:v:42:y:2013:i:3:p:738-748

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: Foreign direct investment; Patent laws; Technology spillover; Japanese firm;

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