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Does stronger intellectual property rights protection matter in developing local R&D outsourcing strategy?

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  • Wen-Bin Chuang
  • To-Han Chang
  • Hui-lin Lin

Abstract

This study examines whether the intellectual property rights (IPR) protection in the host countries has a significant moderating effect on the relationship between local R&D outsourcing strategy and subsidiary productivity. Due to the subsidiary mandate in the host country being categorized as exploitation-orientation or exploration-orientation, we further examine whether there is a different moderating effect for different types of a subsidiary mandate. This analysis takes advantage of the data-set on Taiwan-based subsidiaries and the IPR indices by the World Economic Forum over the 2006–2009 period. The empirical results show that a stronger degree of IPR protection is, on average, found to play a significant moderating role in the influence of R&D outsourcing strategy based on local collaboration relationships. Interestingly, the moderating effects are found to differ between exploitation-orientation and exploration-orientation.

Suggested Citation

  • Wen-Bin Chuang & To-Han Chang & Hui-lin Lin, 2017. "Does stronger intellectual property rights protection matter in developing local R&D outsourcing strategy?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 24(1-2), pages 68-82, April.
    • Handle: RePEc:taf:raaexx:v:24:y:2017:i:1-2:p:68-82
    DOI: 10.1080/16081625.2016.1158658
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