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on Technology and Industrial Dynamics |
| By: | Alireza Naghavi (Dipartimento di Scienze Economiche, University of Bologna and Fondazione Eni Enrico Mattei); Julia Spies (Institute for Applied Economic Research (IAW) and Fondazione Eni Enrico Mattei); Farid Toubal (University of Angers, Paris School of Economics and CEPII) |
| Abstract: | In this paper, we propose the technological complexity of a product and the level of Intellectual Property Rights (IPRs) protection to be the co-determinants of the mode through which multinational firms purchase their goods. We study the choice between intra-firm trade and outsourcing given heterogeneity at the product- (complexity), firm- (productivity) and country- (IPRs) level. Our findings suggest that the above three dimensions of heterogeneity are crucial for complex goods, where firms face a trade-off between higher marginal costs in the case of trade with an affiliate and higher imitation risks in the case of sourcing from an independent supplier. We test these predictions by combining data from a French firm-level survey on the mode choice for each transaction with a newly developed complexity measure at the product-level. Our fractional logit estimations confirm the proposition that although firms are generally reluctant to source highly complex goods from outside the firm’s boundaries, they do so when a strong IPR regime in the host country guarantees the protection of their technology. |
| Keywords: | Sourcing Decision, Product Complexity, Intellectual Property Rights, Fractional Logit Estimation |
| JEL: | F12 F23 O34 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2011.78&r=tid |
| By: | Bronwyn H. Hall; Dietmar Harhoff |
| Abstract: | Recent research on the economics of patents is surveyed. The topics covered include theoretical and empirical evidence on patents as an incentive for innovation, the effectiveness of patents for invention disclosure, patent valuation, and what we know about the design of patent systems. We also look at what is known about some current policy areas, including software and business method patents, university patenting, and the growth in patent litigation. |
| JEL: | K11 L20 O34 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17773&r=tid |
| By: | Anja, Breitwieser; Neil, Foster |
| Abstract: | Following the conclusion of the TRIPS Agreement, much has been written on the potential costs and benefits of stronger Intellectual Property Rights (IPRs) protection in terms of its impact on innovation and technology transfer, as well as economic growth and welfare. This paper documents the development of IPR regimes within countries and internationally, before surveying the theoretical and empirical literature linking the protection of IPRs to economic growth, innovation and technology diffusion. |
| Keywords: | Intellectual Property Rights; Innovation; Economic Growth; Technology Diffusion |
| JEL: | F13 O34 F53 O31 |
| Date: | 2012–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36094&r=tid |
| By: | Nobuo Kiriyama |
| Abstract: | Innovation is critical to creating new sources of growth. Trade is one of the framework conditions that can strengthen innovation in the business sector, as set out in the OECD Innovation Strategy in 2010. This paper broadly sets out three channels through which trade affects innovation. First, imports and foreign direct investment (FDI) as well as trade in technology serve as channels of technology diffusion. Second, imports, FDI and technology licensing contribute to intensifying competition, which can affect incentives for innovation. Third, exports can affect innovation as it serves as a learning opportunity and gives incentives for innovative activities... |
| Keywords: | multilateral trade negotiations, NAMA notifications, World Trade Organisation, trade and innovation, international technology diffusion, competition and innovation, exports and innovation |
| JEL: | F13 F23 L60 O24 |
| Date: | 2012–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:135-en&r=tid |
| By: | Donald A. R. George (University of Edinburgh) |
| Abstract: | Technical progress lowers costs and prices but appears to have an ambiguous effect on product reliabilty. This paper presents a simple model which explains this observation. |
| Date: | 2011–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:edn:esedps:211&r=tid |