Patent protection and foreign R&D investment location choices: inventor mobility and policy convergence

J. Park; R. Belderbos

doi:10.1093/icc/dtac018

Patent protection and foreign R&D investment location choices: inventor mobility and policy convergence

J. Park^*, R. Belderbos

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

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Abstract

We suggest two boundary conditions for the positive role of patent protection in attracting inward foreign R&D investments. Patent protection is less effective in limiting the leakage of nonpatented knowledge through interfirm mobility of employees, and a gradual strengthening of patent protection worldwide diminishes its effect as countries get closer to the intellectual property rights (IPR) frontier. We provide evidence in an empirical analysis of 3393 multinational firms' R&D location choices for 8015 greenfield R&D investments in 105 (potential) host countries, during 2003-2014. The relationship between R&D investment location choices and IPR protection is subject to declining marginal effects and negatively moderated by inventor mobility.

Original language	English
Pages (from-to)	1113-1136
Number of pages	24
Journal	Industrial and Corporate Change
Volume	31
Issue number	4
Early online date	12 Apr 2022
DOIs	https://doi.org/10.1093/icc/dtac018
Publication status	Published - 15 Jul 2022

JEL classifications

f20 - International Factor Movements and International Business: General
o30 - "Technological Change; Research and Development; Intellectual Property Rights: General"

Keywords

INTELLECTUAL PROPERTY PROTECTION
MULTINATIONAL FIRMS
EMPIRICAL-EVIDENCE
ECONOMIC-GROWTH
LABOR MOBILITY
VALUE CHAINS
MIXED LOGIT
KNOWLEDGE
INNOVATION
RIGHTS

Access to Document

10.1093/icc/dtac018

Full TextFinal published version, 414 KBLicence: Taverne

Cite this

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title = "Patent protection and foreign R&D investment location choices: inventor mobility and policy convergence",

abstract = "We suggest two boundary conditions for the positive role of patent protection in attracting inward foreign R&D investments. Patent protection is less effective in limiting the leakage of nonpatented knowledge through interfirm mobility of employees, and a gradual strengthening of patent protection worldwide diminishes its effect as countries get closer to the intellectual property rights (IPR) frontier. We provide evidence in an empirical analysis of 3393 multinational firms' R&D location choices for 8015 greenfield R&D investments in 105 (potential) host countries, during 2003-2014. The relationship between R&D investment location choices and IPR protection is subject to declining marginal effects and negatively moderated by inventor mobility.",

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author = "J. Park and R. Belderbos",

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AU - Park, J.

AU - Belderbos, R.

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N2 - We suggest two boundary conditions for the positive role of patent protection in attracting inward foreign R&D investments. Patent protection is less effective in limiting the leakage of nonpatented knowledge through interfirm mobility of employees, and a gradual strengthening of patent protection worldwide diminishes its effect as countries get closer to the intellectual property rights (IPR) frontier. We provide evidence in an empirical analysis of 3393 multinational firms' R&D location choices for 8015 greenfield R&D investments in 105 (potential) host countries, during 2003-2014. The relationship between R&D investment location choices and IPR protection is subject to declining marginal effects and negatively moderated by inventor mobility.

AB - We suggest two boundary conditions for the positive role of patent protection in attracting inward foreign R&D investments. Patent protection is less effective in limiting the leakage of nonpatented knowledge through interfirm mobility of employees, and a gradual strengthening of patent protection worldwide diminishes its effect as countries get closer to the intellectual property rights (IPR) frontier. We provide evidence in an empirical analysis of 3393 multinational firms' R&D location choices for 8015 greenfield R&D investments in 105 (potential) host countries, during 2003-2014. The relationship between R&D investment location choices and IPR protection is subject to declining marginal effects and negatively moderated by inventor mobility.

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KW - MULTINATIONAL FIRMS

KW - EMPIRICAL-EVIDENCE

KW - ECONOMIC-GROWTH

KW - LABOR MOBILITY

KW - VALUE CHAINS

KW - MIXED LOGIT

KW - KNOWLEDGE

KW - INNOVATION

KW - RIGHTS

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