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The Location of Overseas Research and Development and Intellectual Property Protection

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  • Sunil Kanwar

Abstract

Do multinationals distinguish between locations on the basis of the local intellectual property laws, in conducting their overseas research and development? We seek to address this question using data on US multinationals spanning the period 1977--2004. Particular care is taken to capture the host location enforcement environment of intellectual property protection. For our sample and time frame, we find that stronger intellectual property protection is not important in determining overseas research and development by these multinationals. The results are robust to disaggregation of the protection measure into its component indices, as well as to disaggregation of overseas research and development by industry. Instead, host country market size and human capital resources are found to be consistently important in explaining the location of overseas research and development.

Suggested Citation

  • Sunil Kanwar, 2012. "The Location of Overseas Research and Development and Intellectual Property Protection," Journal of Development Studies, Taylor & Francis Journals, vol. 48(10), pages 1453-1469, October.
    • Handle: RePEc:taf:jdevst:v:48:y:2012:i:10:p:1453-1469
    DOI: 10.1080/00220388.2011.646991
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    References listed on IDEAS

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    1. Keller, Wolfgang, 1998. "Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners," European Economic Review, Elsevier, vol. 42(8), pages 1469-1481, September.
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    1. Christine Greenhalgh, 2013. "Science, Technology, Innovation and IP in India: New Directions and Prospects," Melbourne Institute Working Paper Series wp2013n37, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Mindaugas Kiškis & Tadas Limba & Gintarė Gulevičiūtė, 2016. "Business value of Intellectual Property in Biotech SMEs: case studies of Lithuanian and Arizona’s (US) firms," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(2), pages 221-234, December.
    3. Elisabetta Gentile, 2017. "Intellectual Property Rights and Foreign Technology Licensing in Developing Countries: An Empirical Investigation," ADB Economics Working Paper Series 515, Asian Development Bank.
    4. Deeparghya Mukherjee, 2015. "TRIPS and the Balance between Private Rights and Public Well-being," Foreign Trade Review, , vol. 50(4), pages 284-297, November.

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