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Impact of Intellectual Property Rights Reforms on the Diffusion of Knowledge through FDI

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Author Info

  • Ioana Popovici

    () (Department of Economics, Florida International University)

Abstract

This 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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File URL: http://casgroup.fiu.edu/pages/docs/2244/1275229942_06-02.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0602.

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Length: 29 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:fiu:wpaper:0602

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Web page: http://casgroup.fiu.edu/Economics/
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Related research

Keywords: intellectual property rights; patents; spillovers; R&D; FDI;

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References

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  1. Josh Lerner, 2002. "Patent Protection and Innovation Over 150 Years," NBER Working Papers 8977, National Bureau of Economic Research, Inc.
  2. Keith Maskus, 1998. "The international regulation of intellectual property," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(2), pages 186-208, June.
  3. Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
  4. Peter Thompson, 2004. "Patent Citations and the Geography of Knowledge Spillovers: Evidence from Inventor- and Examiner-Added Citations," Working Papers 0405, Florida International University, Department of Economics, revised Jun 2005.
  5. James Bessen & Eric Maskin, 2006. "Sequential Innovation, Patents, and Imitation," Economics Working Papers 0025, Institute for Advanced Study, School of Social Science.
  6. Helpman, E., 1992. "Innovation, Imitation and intellectual Property Rights," Harvard Institute of Economic Research Working Papers 1597, Harvard - Institute of Economic Research.
  7. Maskus, Keith E. & Penubarti, Mohan, 1995. "How trade-related are intellectual property rights?," Journal of International Economics, Elsevier, vol. 39(3-4), pages 227-248, November.
  8. Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, vol. 55(1), pages 133-153, February.
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Cited by:
  1. Nour, Samia Satti Osman Mohamed, 2013. "The economic importance and impacts of intellectual property rights (IPRs) in Sudan," UNU-MERIT Working Paper Series 014, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.

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