Patent Rights and International Technology Transfer Through Direct Investment and Licensing

Abstract

In this collection, distinguished economists, political scientists, and legal experts discuss the implications of the ever more globalized protection of intellectual property rights for the ability of countries to provide their citizens with such important public goods as basic research, education, public health, and sound environmental policies. Such items increasingly depend on the exercise of private rights over technical inputs and information goods, which could usher in a brave new world of accelerating technological innovation. However, higher and more harmonized levels of international intellectual property rights could also throw up high roadblocks in the path of follow-on innovation, competition, and the attainment of other social objectives. It is at best unclear who represents the public interest in negotiating forums dominated by powerful knowledge cartels. This is the first book to assess the public processes and inputs that an emerging transnational system of innovation will need to promote technical progress, economic growth, and welfare for all participants.

Can Licensing Induce Productivity? Exploring the IPR Effect

“…In this case, Maskus et al (2005) report two direct e↵ects. First, it will a↵ect the slope of the line L 0 , and second, it will a↵ect the intercept of this line.…”

“…As Maskus et al (2005) note, MNEs have the choice to transfer technology through FDI or licensing. This transfer of technology may be enhanced (or reduced) by various factors and conditions such as the institutional capacity of the host country and the country's legal structure and IPR (Yang and Maskus (2001) and Canavire et al (2017)); this last factor raises the cost of imitation in the host country; thus, it increases both modes of entry.…”

“…Bringing in such linkages, and thus the possibility of Maskus et al (2005), the fixed cost of production for firms in the final goods industry takes the following form:…”

“…To examine the e↵ects of licensing on productivity and the potential enhancing e↵ect of IPR, we extend the theoretical model of Maskus et al (2005) and test its 1 Branstetter et al (2006) and Branstetter et al (2007) analyze the various e↵ects of IPR reforms on growth and productivity in di↵erent countries.…”

The Determinants of Innovation Adoption

“…Maskus et al (2004), Mansfield et al (1981), Helpman (1995) or Behnabib andSpiegel (2005) point out how the cost of both the adaptation and imitation of technologies discovered at the frontier (or in other technological sectors) is usually positive but relatively lower than the cost of innovation. The larger the firm, the higher the financial means devoted to the adaptation and imitation of technologies.…”