Offshore Outsourcing, Contractual R&D and Intellectual Property in Developing Countries
AbstractThis paper examines the role of intellectual property in developing countries in offshore outsourcing of R&D. We find that strengthened intellectual property protection in developing countries provides incentive for firms, both multinational and local, to specialize in undertaking an R&D activity in which it has competitive advantage (the specialization effect). It also facilitates the process for local firms to switch from imitators to potential innovators (the switching effect). We demonstrate that the multinational firm's strategic behavior on IPR enforcement can be used as an effective instrument to subsidize contractual research and development in developing countries (the subsidizing effect). We further illustrate how a policy mix of IPR and FDI subsidy in developing countries affects R&D activities adding an offshore R&D subsidiary as an additional organizational form.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 19362.
Date of creation: Dec 2009
Date of revision:
Intellectual Property Rights; Contractual R&D; R&D Chain;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-19 (All new papers)
- NEP-INO-2009-12-19 (Innovation)
- NEP-IPR-2009-12-19 (Intellectual Property Rights)
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