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International Licensing and the Strengthening of Intellectual Property Rights in Developing Countries

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Author Info

  • Walter G. Park
  • Douglas C. Lippoldt

Abstract

This study presents an empirical analysis of the extent to which stronger intellectual property rights promote international technology transfer through licensing activities. The analysis focuses on licensing activities of U.S. multinationals as well as on international licensing alliances between firms in developing and developed nations. Both aggregate level data and firm level data are examined. The study provides general support for the proposition that the strengthening of intellectual property rights - as measured by selected indicators - has had a net positive effect on technology transfer via licensing during the 1990s. The general implication of this study for developing economies is that IPR reform should be one part of a general strategy for promoting economic development in combination with other complementary policy reforms. In particular, patent rights and effective enforcement can be instrumental in enabling firms in developing nations to access and exploit technologies and know-how through licensing agreements with parties in developed nations. Overall, the analysis presented here indicates that where developing countries have moved to address weaknesses in these areas in recent years, they have tended to experience enhanced access to technology through licensing.

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File URL: http://dx.doi.org/10.1787/283275542181
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Trade Policy Papers with number 10.

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Date of creation: 21 Dec 2004
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Handle: RePEc:oec:traaab:10-en

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Related research

Keywords: economic development; licensing; intellectual property rights;

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Cited by:
  1. Carol A. Robbins, 2009. "Measuring Payments for the Supply and Use of Intellectual Property," NBER Chapters, in: International Trade in Services and Intangibles in the Era of Globalization, pages 139-171 National Bureau of Economic Research, Inc.
  2. Papageorgiadis, Nikolaos & Cross, Adam R. & Alexiou, Constantinos, 2013. "The impact of the institution of patent protection and enforcement on entry mode strategy: A panel data investigation of U.S. firms," International Business Review, Elsevier, vol. 22(1), pages 278-292.
  3. Coe, David T. & Helpman, Elhanan & Hoffmaister, Alexander W., 2009. "International R&D spillovers and institutions," European Economic Review, Elsevier, vol. 53(7), pages 723-741, October.
  4. Sunil Kanwar, 2010. "Intellectual Property Protection and the Licensing of Technology to Developing Countries," Working papers 188, Centre for Development Economics, Delhi School of Economics.

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