Intellectual Property Protection and the Industrial Composition of Multinational Activity

Olena Ivus, Walter Park and Kamal Saggi ()

No 15-00012, Vanderbilt University Department of Economics Working Papers from Vanderbilt University Department of Economics

Abstract: In a North-South model with endogenous FDI, we examine the impact of Southern IPR protection on the mode and industrial composition of international technology transfer. A novel feature of the model is that, due to technological reasons, industries differ with respect to their susceptibility to imitation. In equilibrium, licensing occurs in industries where the risk of imitation is low and FDI where it is of intermediate magnitude. Stronger IPRs in the South (i) alter the industrial composition of multinational activity towards licensing at the expense of FDI; (ii) reduce local imitation; and (iii) increase licensing and, to a lesser extent, FDI.

Keywords: trade; intellectual property rights; licensing; FDI; technology transfer (search for similar items in EconPapers)
JEL-codes: F1 O3 (search for similar items in EconPapers)
Date: 2015-11-06
New Economics Papers: this item is included in nep-ino, nep-int, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: INTELLECTUAL PROPERTY PROTECTION AND THE INDUSTRIAL COMPOSITION OF MULTINATIONAL ACTIVITY (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:van:wpaper:vuecon-sub-15-00014

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