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The Location of Overseas Research and Development and Intellectual Property Protection

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  • Sunil Kanwar

Abstract

Do multinationals distinguish between locations on the basis of the local intellectual property laws, in conducting their overseas research and development? We seek to address this question using data on US multinationals spanning the period 1977--2004. Particular care is taken to capture the host location enforcement environment of intellectual property protection. For our sample and time frame, we find that stronger intellectual property protection is not important in determining overseas research and development by these multinationals. The results are robust to disaggregation of the protection measure into its component indices, as well as to disaggregation of overseas research and development by industry. Instead, host country market size and human capital resources are found to be consistently important in explaining the location of overseas research and development.

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File URL: http://hdl.handle.net/10.1080/00220388.2011.646991
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 48 (2012)
Issue (Month): 10 (October)
Pages: 1453-1469

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Handle: RePEc:taf:jdevst:v:48:y:2012:i:10:p:1453-1469

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Cited by:
  1. Christine Greenhalgh, 2013. "Science, Technology, Innovation and IP in India: New Directions and Prospects," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2013n37, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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