Impact of Intellectual Property Rights Reforms on the Diffusion of Knowledge through FDI
AbstractThis paper examines the impact of intellectual property rights (IPR) reforms on the technology flows between the U.S. and countries where U.S. multinationals have established affiliates. We use patent citations as a proxy for knowledge spillovers to examine whether the diffusion of new technology between the host countries and the U.S. is accelerated by the reforms. We test the hypothesis that strengthening patent protection facilitates knowledge flows (in the form of patent citations) between U.S. multinationals and their subsidiaries in the reforming countries and between other U.S. firms and reforming countries domestic firms. Our results suggest that the reforms favor innovative efforts of domestic firms in the reforming countries rather than U.S. affiliates efforts. In other words, reforms mediate the technology flows from the U.S. to the reforming countries.
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Bibliographic InfoPaper provided by Florida International University, Department of Economics in its series Working Papers with number 0602.
Length: 29 pages
Date of creation: May 2006
Date of revision:
intellectual property rights; patents; spillovers; R&D; FDI;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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