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The effects of intellectual property protection on international knowledge contracting

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Author Info
Elif Bascavusoglu () (TEAM)
Maria Pluvia Zuniga () (TEAM)

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Abstract

Developing countries, and particularly, those with a growing technological capacity, expect foreign technology transfers to increase when strengthening their intellectual property protection (IPR) rights. This paper evaluates empirically the impact of IPR on disembodied knowledge trade. It presents an exploration on Bilateral French Technology Receipts at the industry level for the period 1994-2000. Two main findings stem from our analysis. First, it is found that IPR affects positively international knowledge contracting. Nevertheless, our findings show that the impact of IPR protection differs according to countries' income level and technological capacity. Stronger IPR rights can deter technology contracting in developing economies. Second, the effects of IPR protection are found to differ across industries. Stronger protection is found to be irrelevant to attract knowledge contracting in R&D-intensive industries, contrarily to middle R&D-intensive industries. Lastly, our findings on industries' sensitivity to foreign IPR protection differ from the results reported by survey studies (Mansfield et alii, 1968 ; Levin et alii, 1987 ; Cohen et alii, 2000) concerning the relative importance of IPR protection across industries to appropriate innovation.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla05009.

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Length: 36 pages
Date of creation: Jan 2005
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Handle: RePEc:mse:wpsorb:bla05009

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Related research
Keywords: Intellectual property rights; international technology transfer; patent protection.;

Find related papers by JEL classification:
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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