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International Technology Licensing, Intellectual Property Rights, and Tax Havens

Ana Maria Santacreu

No 2019-031, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper investigates the determinants of international technology licensing using data for 50 countries during 1996-2012. A multi-country model of innovation and international technology licensing yields a dynamic structural gravity equation for royalty payments as a function of fundamentals, including imperfect intellectual property protection and differences in corporate taxation. The gravity equation is estimated with nonlinear methods. The model's fundamentals account for about 60% of the variation in royalty payments. A quantitative analysis sheds light on the impact of global taxation reforms on both international technology licensing and innovation. The findings highlight the crucial role of taxation in shaping cross-border flows of technology and the potential consequences of profit-shifting strategies.

Keywords: technology diffusion; royalty payments; intellectual property rights (search for similar items in EconPapers)
JEL-codes: F12 O33 O41 O47 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2019-11-04, Revised 2023-09-08
New Economics Papers: this item is included in nep-ino and nep-pay
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Citations: View citations in EconPapers (1)

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DOI: 10.20955/wp.2019.031

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