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Counterfeiting in digital technologies: An empirical analysis of the economic performance and innovative activities of affected companies

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  • Butticè, Vincenzo
  • Caviggioli, Federico
  • Franzoni, Chiara
  • Scellato, Giuseppe
  • Stryszowski, Piotr
  • Thumm, Nikolaus

Abstract

This study analyses empirically the effects of counterfeiting on the economic and innovation performance of firms, exploiting a novel and unique dataset that integrates information on custom seizures worldwide during years 2011–2013 with financial accounting data, patent and trademark data for a sample of digital technology companies. We apply diff-in-diff models using a large control sample of non-affected firms. Results provide robust evidence that counterfeiting is associated to a negative impact on operative margins of affected companies, relative to the control sample. The analysis does not find conclusive evidence on the effects of counterfeiting on the innovation activities of affected companies. We find no evidence in support of the hypothesis that counterfeiting could also exert an indirect positive effect on the sales of genuine goods.

Suggested Citation

  • Butticè, Vincenzo & Caviggioli, Federico & Franzoni, Chiara & Scellato, Giuseppe & Stryszowski, Piotr & Thumm, Nikolaus, 2020. "Counterfeiting in digital technologies: An empirical analysis of the economic performance and innovative activities of affected companies," Research Policy, Elsevier, vol. 49(5).
    • Handle: RePEc:eee:respol:v:49:y:2020:i:5:s0048733320300391
    DOI: 10.1016/j.respol.2020.103959
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    Cited by:

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    3. Thomä, Jörg & Bischoff, Thore S., 2022. "From automation to databased business models - digitalization and its links to innovation in small and medium-sized enterprises," ifh Working Papers 31/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2022.
    4. Pittiglio, Rosanna, 2023. "Counterfeiting and firm survival. Do international trade activities matter?," International Business Review, Elsevier, vol. 32(5).
    5. Yangjun Ren & Botang Li, 2022. "Digital Transformation, Green Technology Innovation and Enterprise Financial Performance: Empirical Evidence from the Textual Analysis of the Annual Reports of Listed Renewable Energy Enterprises in C," Sustainability, MDPI, vol. 15(1), pages 1-15, December.
    6. Yangjun Ren & Xin Zhang & Hui Chen, 2022. "The Impact of New Energy Enterprises’ Digital Transformation on Their Total Factor Productivity: Empirical Evidence from China," Sustainability, MDPI, vol. 14(21), pages 1-17, October.
    7. Chen, Jianqiang & Hsieh, Pei-Fang & Wang, Kun, 2023. "Cracking down on the infringement and counterfeiting: Intellectual property rights and corporate innovation in China," Finance Research Letters, Elsevier, vol. 55(PA).

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