Intellectual property rights, non-market considerations and foreign R&D investments
Journal
Research Policy
ISSN
0048-7333
ISSN-Digital
1873-7625
Type
journal article
Date Issued
2022-03
Author(s)
Abstract
Prior research has focused on how firms use a variety of organizational mechanisms to protect their R&D investments from misappropriation risks in foreign countries. Little is known, however, about how firms can rely on non-market factors to induce preferential treatment by host government authorities, thereby protecting their intellectual property overseas. In this paper, we investigate two such non-market factors, one at the country level, the other at the firm level, that are likely to influence the choice of where firms locate their innovation activities: host country inclination towards the firm's home country and the firm's political capabilities, respectively. We thus examine how IPR policies and non-market factors interact in protecting firm innovation from misappropriation and in making countries more attractive for innovation-related activities. We find support for our predictions in a sample of 1,341 foreign R&D investments made by 163 firms from 14 home countries over the period 2003–2016.
Keywords
Intellectual property rights
Foreign R&D investments
Political capabilities
Intercountry perceptions
Innovation policy
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier BV
Volume
51
Number
2
Subject(s)
Division(s)
File(s)![Thumbnail Image]()
Name
1-s2.0-S0048733321002341-main.pdf
Type
Main Article
Size
759.09 KB
Format
Adobe PDF
Checksum (MD5)
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