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Intellectual property rights protection and R&D offshoring: evidence from Taiwan

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  • Po-Lu Chen
  • Hsun-Fang Hsu

Abstract

This paper investigates the nexus between intellectual property rights (IPRs) protection and research and development (R&D) offshoring by employing data from Taiwanese multinational enterprises (MNEs) for the period 2003–2005. The empirical results suggest that if a country with IPR protection strength equal to that in Chile increases its IPR protection to the level similar to Taiwan, then the Taiwanese MNEs’ likelihood of R&D offshoring to that country will reduce by 2.1%. This result lends support to the prediction of Gersbach and Schmutzler (2011, Oxford Economic Papers 63(1)).

Suggested Citation

  • Po-Lu Chen & Hsun-Fang Hsu, 2017. "Intellectual property rights protection and R&D offshoring: evidence from Taiwan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 647-656, October.
    • Handle: RePEc:taf:rjapxx:v:22:y:2017:i:4:p:647-656
    DOI: 10.1080/13547860.2017.1345110
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