Offshore Outsourcing, Contractual R&D and Intellectual Property in Developing Countries
This 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.
|Date of creation:||Dec 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:hrv:faseco:4784029 is not listed on IDEAS
- Chen, Yongmin & Ishikawa, Jota & Yu, Zhihao, 2001.
"Trade Liberalization and Strategic Outsourcing,"
2001-04, Graduate School of Economics, Hitotsubashi University.
- Marjit, Sugata, 1990. "On a non-cooperative theory of technology transfer," Economics Letters, Elsevier, vol. 33(3), pages 293-298, July.
- Maskus, Keith E. & Penubarti, Mohan, 1995. "How trade-related are intellectual property rights?," Journal of International Economics, Elsevier, vol. 39(3-4), pages 227-248, November.
- Antràs, Pol & Helpman, Elhanan, 2004.
CEPR Discussion Papers
4170, C.E.P.R. Discussion Papers.
- Antras, Pol & Helpman, Elhanan, 2004. "Global Sourcing," Scholarly Articles 3196327, Harvard University Department of Economics.
- Pol Antras & Elhanan Helpman, 2003. "Global Sourcing," Harvard Institute of Economic Research Working Papers 2005, Harvard - Institute of Economic Research.
- Pol Antràs & Elhanan Helpman, 2003. "Global Sourcing," NBER Working Papers 10082, National Bureau of Economic Research, Inc.
- Ping Wang & Raymond Riezman, 2008.
"Preference Bias and Outsourcing to Market: A Steady-State Analysis,"
CESifo Working Paper Series
2222, CESifo Group Munich.
- Raymond Riezman & Ping Wang, 2009. "Preference Bias and Outsourcing to Market: A Steady-State Analysis," Review of International Economics, Wiley Blackwell, vol. 17(SI), pages 338-356, 05.
- Chowdhury, Prabal Roy, 2005.
"Patents and R&D: The tournament effect,"
Elsevier, vol. 89(1), pages 120-126, October.
- Prabal Roy Chowdhury, 2005. "Patents and R & D: The tournament effect," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 05-05, Indian Statistical Institute, New Delhi, India.
- Mukherjee, Arijit, 2006. "Patents and R&D with imitation and licensing," Economics Letters, Elsevier, vol. 93(2), pages 196-201, November.
- Soumyananda Dinda & Arijit Mukherjee, 2011.
"International Outsourcing, Tax, and Patent Protection,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 13(1), pages 139-154, 02.
- Soumyananda Dinda & Arijit Mukherjee, . "International Outsourcing, Tax and Patent Protection," Discussion Papers 08/46, University of Nottingham, GEP.
- Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99, December.
- Yang, Guifang & Maskus, Keith E., 2001. "Intellectual property rights, licensing, and innovation in an endogenous product-cycle model," Journal of International Economics, Elsevier, vol. 53(1), pages 169-187, February.
- Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:19362. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.