Intellectual Property Rights, Multinational Firms and Technology Transfers

Sara Biancini and Pamela Bombarda

No 2017-16, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: Intellectual property rights (IPR) protect firms from imitation and are considered crucial to promote innovation and technological diffusion. This paper examines the im- pact of IPR on import sourcing decisions of multinationals. We consider a framework in which multinational firms offshore production of an intermediate good in a developing country. Firms can either decide to import the intermediate from vertically integrated producers, or from independent suppliers. In both cases, offshoring part of the produc- tion process embodies a risk of imitation. The model predicts that, under reasonable assumptions, stronger IPR encourage by a larger extent the imports of intermediates through vertical integration. Using U.S. Related-Party Trade database, we find empiri- cal evidence supportive of the positive link between level of IPR and the relative share of imports from vertically integrated manufacturers.

Keywords: Intellectual Property Rights; MNF; FDI; outsourcing; international trade. (search for similar items in EconPapers)
JEL-codes: F12 F23 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ino, nep-int, nep-ipr and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Intellectual property rights, multinational firms and technology transfers (2021)
Working Paper: Intellectual property rights, multinational firms and technology transfers (2021)
Working Paper: Intellectual Property Rights, Multinational Firms and Technology Transfers (2017)
Working Paper: Intellectual Property Rights, Multinational Firms and Technology Transfers (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2017-16

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