Do Stronger Intellectual Property Rights Increase International Technology Transfer?: Empirical Evidence from U.S. Firm-Level Panel Data
Coauthor(s): C. Fritz Foley.
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This paper examines how technology transfer within U.S. multinational firms changes in
response to a series of IPR reforms undertaken by 16 countries over the 1982-1999
period. Analysis of detailed firm-level data reveals that royalty payments for intangibles
transferred to affiliates increase at the time of reforms, as do affiliate R&D expenditures
and total levels of foreign patent applications. Increases in royalty payments and R&D
expenditures are concentrated among and exceed 30% for affiliates of parent companies
that use U.S. patents more extensively prior to reform and are therefore expected to value
IPR reform most.
Source: Quarterly Journal of Economics
Fisman, Raymond, Lee Branstetter, and C. Fritz Foley. "Do Stronger Intellectual Property Rights Increase International Technology Transfer?: Empirical Evidence from U.S. Firm-Level Panel Data." Columbia Business School, January 2005.