Intellectual property rights, southern innovation and foreign direct investment

Anuj Mathew and Arijit Mukherjee

International Review of Economics & Finance, 2014, vol. 31, issue C, 128-137

Abstract: The strength of intellectual property rights (IPR) in host countries is often considered to be an important determinant of inward foreign direct investment (FDI). Considering FDI to a developing or a newly industrialized country, we show that the host-country firm's innovative activity, which is empirically relevant yet has been ignored mostly in the literature, plays an important role in the relation between IPR and FDI. If imitation occurs under both export and FDI by the developed-country firm, stronger IPR in the host country may reduce inward FDI.

Keywords: Foreign direct investment; Innovation; Patent protection (search for similar items in EconPapers)
JEL-codes: F23 O31 O34 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Intellectual property rights, Southern innovation and foreign direct investment (2010)
Working Paper: Intellectual property rights, southern innovation and foreign direct investment (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:31:y:2014:i:c:p:128-137

DOI: 10.1016/j.iref.2013.11.004

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