do stronger intellectual property rights increase innovation summary do stronger intellectual property rights ipr increase innovation recent decades have seen a global transformation in ipr standards underpinned by the theory that stronger iprs spur increased incentives to innovate this study tests the impact of ever more rigorous ipr systems on innovation through an index of economic complexity of 94 countries from 1965 to 2005 our results confirm that stronger intellectual property systems engender higher levels of economic complexity nevertheless only countries with an initial above average level of development and complexity enjoy this effect

patent length and the rate of innovation this paper models the effect of patent length on the rate of innovation and consumer welfare the authors find that the patent length that maximizes the rate of innovation exceeds that which maximizes consumer welfare they show a countervailing effect of patent length upon the size and frequency of innovation longer patents increase the size but decrease the frequency of innovation the patent lengths that maximize the rate of innovation and welfare represent balance points between size and frequency the divergence of the welfare maximizing and rate of innovation maximizing patent lengths has important policy implications that the authors briefly explore copyright 1996 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

ownership dynamics and asset pricing with a large shareholder we analyze the optimal trading and ownership policy of a large shareholder who must trade off diversification and monitoring incentives without commitment the problem is similar to durable goods monopoly the share price today depends on expected future trades we show that the large shareholder ultimately trades to the competitive price taking allocation even though it entails inefficient monitoring with continuous trading the large shareholder trades immediately to this allocation if moral hazard is weak enough that her private valuation of a share is decreasing in her stake otherwise the large shareholder adjusts her stake gradually we consider implications for asset pricing ipo underpricing and lockup provisions

toward resource independence why state owned entities become multinationals an empirical study of india s public r d laboratories in this paper we build on the standard resource dependence theory rdt and its departure suggested by vernon to offer a novel explanation for why state owned entities soes might seek a global footprint and global cash flows to achieve resource independence from other state actors in the context of soes the power use hypothesis of standard rdt can be used to analyze the dependence of soes on other state actors such as government ministries and government agencies that have ownership and control rights in the soe building on vernon we argue that the soe can break free from this power imbalance and establish resource independence from other state actors by becoming a multinational firm and or by generating global cash flows we leverage a natural experiment in india and outline both quantitative and qualitative evidence from 42 indian state owned laboratories to support this argument

the benefits and costs of strong patent protection a contribution to the current debate abstract today s conventional wisdom is that strong patent rights are conducive to economic progress yet not long ago students of the patent system took a more nuanced position arguing that often strong patents were not necessary to induce invention and entailed significant economic costs several empirical studies have supported this position however the current advocacy invokes theories of the positive benefits of patents that were repressed in the earlier more negative analyses this essay reviews these theories and the empirical evidence that might bear on them the authors conclude that there is reason for concern that the present movement towards stronger patent protection may hinder rather than stimulate technological and economic progress

trips trade and technology transfer a north south model of unintentional technology transfer is developed where the stringency of southern patent protection provides the institutional backdrop for a strategic game in a high tech goods market the appropriability regime is set endogenously and combines elements of imperfect southern patent protection with the protection afforded by market made northern technology masking less stringent protection of northern intellectual property can work much like other strategic trade policies therefore developed countries appear to be right in demanding discussion of intellectual property rights in gatt

the political economy of international trade essays in honour of robert e baldwin part 1 theory of trade policy with imperfect information avinash dixit strategic trade policy and the new international economics a critical analysis gottfried haverlay the role of services in production and international trade a theoretical framework ronald w jones and henry kierzkowski the coefficient of trade utilization back to the baldwin envelope james e anderson and j peter neary part 2 trade policy issues reflections on uniform taxation arnold c harberger intellectual property rights and north south trade judith c chin and gene m grossman optimal tariff retaliation rules david f burgess international trade in capital and capital goods rachel mcculloch and j david richardson part 3 political economy of trade policy asymmetries in policy between exportables and import competing goods anne d krueger trade policy development and the new political economy gerald m meier does 1992 come before or after 1990 on regional versus multilateral integration andre sapir part 4 empirical studies of trade issues the structure and effects of tariff and non tariff barriers in 1983 edward leamer a computational analysis of alternative safe guards of policy scenarios in international trade alan v deardorff and robert m stern direct foreign investments and trade in east and southeast asia seiji naya

fairness and efficiency in multiportfolio optimization we deal with the problem faced by a portfolio manager in charge of multiple accounts we argue that because of market impact costs this setting differs in several subtle ways from the classical single account case with the key distinction being that the performance of each individual account typically depends on the trading strategies of other accounts as well we propose a novel tractable approach for jointly optimizing the trading activities of all accounts and also splitting the associated market impact costs between the accounts our approach allows the manager to balance the conflicting objectives of maximizing the aggregate gains from joint optimization and distributing them across the accounts in an equitable way we perform numerical studies that suggest that our approach outperforms existing methods employed in the industry or discussed in the literature

safe nests in global nets internationalization and appropriability of r d in wireless telecom this paper documents the case of the wireless telecom industry to bring new empirical evidence to the debate on the internationalization of research and development r d activities us patent statistics on the four industry leaders ericsson motorola nokia and qualcomm illustrate the growing trend of the internationalization of r d over the 1990s yet we show that the most critical r d projects related to the development of wireless standards remain homebound the paper then leverages qualitative data collected through interviews with informed managers to provide a fresh interpretation for the homeboundedness of critical industrial r d the stickiness of core r d projects to domestic locations is related not only to organizational inertia and the unripe maturation of subsidiaries as suggested by prior literature but particularly to the headquarters centralization of intellectual property ip management which offers a high level of appropriability of r d results the unequal distribution of appropriability across corporate r d networks is at the base of the formation of safe nests domestic r d centers that are sheltered from the forces of globalization because they offer a desirable setting for the exploitation of technologies deriving from a stronger coordination of inventive activities with the management of ip

determinants of patent rights a cross national study abstract this paper presents an index of patent rights for 110 countries for the period 1960 1990 the index is used to examine what factors or characteristics of economies determine how strongly patent rights will be protected the evidence does indicate that more developed economies tend to provide stronger protection but the underlying factors which influence patent protection levels are the country s level of research and development r d activity market environment and international integration which are correlated with its level of development the results qualify however that r d activity influences patent protection levels after a nation s research sector reaches a critical size an implication of this is that to raise patent protection levels in weakly protecting countries it is important to foster a significant research base in those countries and thereby create incentives for protecting patent rights

anonymous shell companies a global audit study and field experiment in 176 countries to test whether firms behave consistently with international law prohibiting anonymous incorporation we conducted a global audit study and field experiment using data from 1639 incorporation firms in 176 countries we requested anonymous incorporation and randomly assigned references to international law threat of penalties norms of appropriate behavior or a placebo we find a substantial number of firms willing to flout international standards and show that those in oecd countries proved significantly less compliant with rules than in developing countries or tax havens firms in tax havens displayed significantly greater compliance and were sensitive to experimental interventions invoking international law

large block transactions the speed of response and temporary and permanent stock price effects abstract the paper investigates how quickly prices attain new equilibrium levels after large block transactions and measures the associated temporary and permanent price effects we find that prices adjust within at most three trades with most of the adjustment occurring in the first trade the temporary price effect for seller initiated transactions is related to block size but the temporary price effect observed for buyer initiated transactions is no larger than that observed in 100 share trades most of the price effect associated with block trades is permanent and is related to block size regardless of the initiating party

licensee technological potential and exclusive rights in international licensing a multilevel model granting of exclusive rights is an important consideration for firms using licensing as a mode of entry into foreign markets as exclusive contracts reduce licensors flexibility in a given market during the term of the agreement by granting exclusivity to a licensee with greater technological potential the exchange partners can increase the potential transactional value of the licensing agreement at the same time a licensee with strong technological potential will increase the threat of transactional hazards due to underinvestment and rent appropriation in this paper we develop and empirically test a model that evaluates the balancing of transactional value and transaction costs in exclusive licensing in particular we identify the conditions under which exclusive contracts are likely to be granted to foreign licensees with strong technological potential empirical results from a multilevel model based on 375 international licensing agreements of us firms in high technology industries during 1995 2008 show that licensees with a stronger technological potential are more likely to be granted exclusive rights in countries with strong intellectual property rights protection and in industries with a high rate of technological change but are less likely to be granted exclusive rights when there is a high degree of overlap between licensor and licensee products

modeling agricultural innovation in a rapidly developing country the case of chinese pesticide industry technology and innovation play an increasingly important role in the economic development of both developed and developing countries we investigate how policy and market factors influence firms or other potential inventors decisions on innovation or imitation by developing a model that emphasizes expected market size appropriability and technological opportunity we empirically test the model using provincial pesticide innovation data from a rapidly developing country china we find that the government encouraged local innovation by opening regions to more international trade by increasing investments in public research and education and by strengthening intellectual property right ipr enforcement to meet its wto trips obligations moreover while ipr enforcement and increases in market size are important in encouraging innovation empirical evidence is mixed as inventors respond to these factors differently policies to increase expected market size could increase copying rather than inducing r d investments and extended patent life may reinforce the original standing of infringers as well as inventors

intellectual property rights licensing and innovation in an endogenous product cycle model abstract we develop a dynamic general equilibrium model of the product cycle to study the effects of stronger intellectual property rights iprs in the south on the incentives of firms in the north to innovate and to license advanced technologies innovation and licensing are random processes requiring resources stronger iprs increase the licensor s share of rents and reduce the costs of licensing contracts thus the returns to both licensing and innovation would rise while additional resources would be available for r d in consequence innovation and technology transfer would rise however the effect of stronger iprs on relative wages between regions is ambiguous

does stronger patent protection increase export variety evidence from us product level data proponents of global intellectual property rights iprs reforms have argued that developing countries weak iprs limit their access to foreign innovative products and technologies central to our understanding of the effects of iprs on product access is the influence of national differences in patent protection on corporate behavior and business strategy of multinational firms using detailed product data on us exports from 1990 to 2000 this research note assesses the impact of strengthening iprs in developing countries on product variety of us exports colonial origin and cross industry variation in patent effectiveness serve to identify the impact the results show that the strengthening of iprs increased exports of new products in patent sensitive industries the expansion in product variety accounted for the entire increase in us exports the findings substantiate claims that ratification of trips by developing countries promotes access to new foreign products and technologies additionally the results demonstrate that patent protection is a significant institutional factor in us firms business decisions over the introduction of new products and processes into a developing country marketplace

to reduce energy consumption and to maintain rapid economic growth analysis of the condition in china based on expended ipat model abstract as one of the important driving forces of world economic development china s rapid economic growth has not only supplied the world with a large number of manufactured goods but also caused china s sustained and rapid increase in energy consumption because of the characteristics of china s economic development and overall low productivity derive from them in many years according to the ipat model and its expansion this article figures out china s indicators of economic growth and changes in energy consumption brought by technological progress since 1986 empirical results show that despite many years efforts china s high speed economic growth is still largely dependent on massive energy consumption how to maintain rapid economic growth while reducing energy consumption china has faced the very problem it needs to address

innovation intellectual property rights and economic development a unified empirical investigation two important strands of literature investigate the way the effect of intellectual property rights ipr on innovation depends on either the initial ipr level or the level of economic development we expand on this by studying their joint effect in a single unified empirical framework we find that the effect of ipr on innovation is more complex than previously thought displaying important nonlinearities depending on the initial levels of both ipr and per capita gdp the policy implications of this are examined and include the conclusion that a single global level of ipr is in general sub optimal

optimal deleveraging with nonlinear temporary price impact abstract in this paper we first propose a portfolio management model where the objective is to balance equity and liability the asset price dynamics includes both permanent and temporary price impact where the permanent impact is a linear function of the cumulative trading amount and the temporary impact is a k th between 0 and 1 order power function of the instantaneous trading rate we construct efficient frontiers to visualize the tradeoff between equity and liability and obtain analytical properties regarding the optimal trading strategies in the second part we further consider an optimal deleveraging problem with leverage constraints it reduces to a non convex polynomial optimization program with polynomial and box constraints a lagrangian method for solving the problem is presented and the quality of the solution is studied

welfare effects of global patent protection this paper uses a simple model of invention and patent protection to examine the welfare effects of extending patent protection from the country where invention takes place to another country that is only a consumer of invented products it is shown that while the welfare of the inventing country certainly rises with the extension of patent protection that of the other country probably falls and may well fall by more than the increase in welfare of the inventing country in particular as patent protection is extended to a larger and larger portion of the world the effect on the welfare of the world as a whole of extending it to the rest of the world becomes negative

crisis and risk management from theory alternative investments require a premium return because they are less liquid than market investments this liquidity premium varies considerably over time as a function of preferences leverage technology the developments in financial technology and changes in institutional arrangements the dynamics of the liquidity premium depend on institutional reactions to financial crises during 1997 1998 we have seen the movement of a financial crisis around the world it started in southeast asia moved through latin america and then visited russia and returned again to south america the financial crisis has also infected europe and the united states especially during august october 1998 the increase in volatility particularly in the equity markets and the flight to liquidity around the world resulted in an extraordinary reduction in the capital base of the firm that i was associated with long term capital management ltcm this reduction in capital culminated in a form of negotiated bankruptcy a consortium of 14 institutions with outstanding claims against ltcm infused new equity capital into ltcm and took over it and the management of its assets they hired ltcm s former employees to manage the portfolio under their direct supervision and with sufficient incentives to undertake the task efficiently although the federal reserve bank frb facilitated the takeover it did not bail out ltcm many debtor entities found it in their self interest not to post the collateral that was owed to ltcm and other creditor entities claimed to be ahead of others to secure earlier payoffs without the frb acting quickly to mitigate these holdup activities ltcm would have had to file for bankruptcy for some a more efficient outcome but a far more costly outcome for society if there was a bailout it failed ltcm has been effectively liquidated because of ltcm the press and others have taken the opportunity to criticize financial modeling and in particular the value of optionpricing models in truth mathematical models and option pricing models played only a minor role if any in ltcm s failure at ltcm models were used to hedge local risks ltcm was in the business of supplying liquidity at levels that were determined by its traders in 1998 ltcm had large positions concentrated in less liquid assets as a result of the financial crisis ltcm was forced to switch from being a large supplier to being a large demander of liquidity at a cost that eliminated its capital although the russian default the ltcm bankruptcy and the financial difficulties of other financial service firms are the most visible manifestations of the crisis of the late summer and fall of 1998 to this day we observe much greater volatility and lack of liquidity in many debtrelated and equity related financial markets for example during the summer of 1999 3 5 yearlong dated volatility on the standard and poor s sp bengt holmstrom massachusetts institute of technology jeremy stein massachusetts institute of technology

what is behind the recent surge in patenting abstract we investigate the cause of an unprecedented surge of us patenting over the past decade conventional wisdom points to the establishment of the court of appeals of the federal circuit by congress in 1982 we examine whether this institutional change which has benefited patent holders explains the burst in us patenting using both international and domestic data on patent applications and awards we conclude that the evidence is not favorable to the conventional view instead it appears that the jump in patenting reflects an increase in us innovation spurred by changes in the management of research

in search of liquidity block trades in the upstairs and downstairs markets we analyze the ability of various market mechanisms to provide liquidity for large equity trades using data on 21 077 block transactions in dow jones stocks we find that the down stairs nyse floor market is a significant source of liquidity although negotiation in the informal upstairs market provides better execution than the downstairs market for large trades these differences are economically small we find however that upstairs markets are used by traders who can credibly signal that their trades are liquidity motivated thus upstairs markets allow trades that may not otherwise occur article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

intellectual property rights reform and the cost of corporate debt abstract this paper investigates the role of intellectual property rights ipr protection on the cost of bank loans for firms in 48 countries using substantial reforms of patent rights as a source of identifying variation the paper provides strong evidence that borrowers from countries that underwent ipr reform experience significant reductions in the cost of bank debt importantly the effects of ipr reform on loan rates are significantly larger in industries that are more ip intensive additional analysis shows that in the wake of reforms borrowers obtain larger size loans which indicates that improvements in ipr are associated with greater credit availability ipr reform also increases foreign lenders participation in loan syndicates overall these findings suggest that legal protection afforded to intellectual property has a significant impact on the cost of corporate borrowing and the ability of innovative firms to raise debt capital

optimal portfolio liquidation with distress risk we analyze the problem of an investor who needs to unwind a portfolio in the face of recurring and uncertain liquidity needs with a model that accounts for both permanent and temporary price impact of trading we first show that a risk neutral investor who myopically deleverages his position to meet an immediate need for cash always prefers to sell more liquid assets if the investor faces the possibility of a downstream shock however the solution differs in several important ways if the ensuing shock is sufficiently large the nonmyopic investor unwinds positions more than immediately necessary and all else being equal prefers to retain more of the assets with low temporary price impact in order to hedge against possible distress more generally optimal liquidation involves selling strictly more of the assets with a lower ratio of permanent to temporary impact even if these assets are relatively illiquid the results suggest that properly accounting for the possibility of future shocks should play a role in managing large portfolios

intellectual property rights and innovation a panel analysis we investigate the relationship between intellectual property rights ipr and innovation for a panel of 48 countries between 1998 and 2011 prior empirical studies mainly focus on strength of patent regulations largely ignoring the enforcement of such laws in practice we employ a new index that accounts for the enforcement related component of the patent system and the ginarte and park 1997 index of patent regulatory strength we thus include two crucial elements of a national patent system the de jure position relating to book law and ipr regulations and the de facto position relating to ipr enforcement we consider nonlinearities between ipr and innovation and we find that both nonlinearities and the enforcement aspect are significant in explaining the relationship between innovation and ipr systems

exploiting the medium term biomass energy potentials in austria a comparison of costs and macroeconomic impact the transition to an implicitly solar basedenergy system can make use of various specificbiomass energy systems this paper provideseconomic and environmental indicators forevaluating alternative options the paper proceeds in three empirical steps first an expert survey supplies the primarybiomass potentials available for non food usein austria and their respective costs second an inquiry into investment operating andfinancing costs of 30 different biomass energyuse systems allows a standardized comparisonamong them and their relationship to fossilreference technologies third a computablegeneral equilibrium model of the austrianeconomy is employed to quantify the impacts offostering the use of distinct biomass energytechnologies the results allow us to distinguish betweenthose technologies that tend to lead to anincrease in both gdp and employment e g combined heat and power production from sewagesludge biogas to an increase only inemployment while gdp tends to diminish e g district heating based on agricultural pellets or to a decline in both e g co firing basedon wood chips bark or industrial pellets individual technologies could account for up toone third of austrias kyoto obligation whilecombinations of technologies triggered by acombined co2 tax and biomass energysubsidy for example could almost fully lead toaustrian kyoto compliance

patent rights and innovative activity evidence from national and firm level data global standards of patent protection have been strengthened and harmonized in recent years despite the heated policy debates and theoretical controversies empirical studies of the consequences for innovative activity are scant this paper contributes to the debate by providing an empirical analysis of the effects of patent strength on different aspects of innovative activity namely firm level research and development r d domestic patenting and foreign patenting the analysis employs an updated index of patent rights the results show the complexity of evaluating the effects of patent reform on innovative activity since the effects vary nonlinearly depending on the initial level of patent strength and vary by a country s level of economic development overall for developing economies patent strength negatively affects domestic patent filings and insignificantly affects r d and foreign patent filings for developed economies patent strength positively affects r d and domestic patent filings and negatively affects foreign patent filings after some critical level of patent protection is reached journal of international business studies 2007 38 878 900 doi 10 1057 palgrave jibs 8400306

the patent paradox revisited an empirical study of patenting in the u s semiconductor industry 1979 1995 we examine the patenting behavior of firms in an industry characterized by rapid technological change and cumulative innovation recent survey evidence suggests that semiconductor firms do not rely heavily on patents to appropriate returns to r d yet the propensity of semiconductor firms to patent has risen dramatically since the mid1980s we explore this apparent paradox by conducting interviews with industry representatives and analyzing the patenting behavior of 95 u s semiconductor firms during 1979 1995 the results suggest that the 1980s strengthening of u s patent rights spawned patent portfolio races among capital intensive firms but it also facilitated entry by specialized design firms

episodic liquidity crises cooperative and predatory trading we describe how episodic illiquidity arises from a breakdown in cooperation between market participants we first solve a one period trading game in continuous time using an asset pricing equation that accounts for the price impact of trading then in a multi period framework we describe an equilibrium in which traders cooperate most of the time through repeated interaction providing apparent liquidity to one another cooperation breaks down when the stakes are high leading to predatory trading and episodic illiquidity equilibrium strategies that involve cooperation across markets lead to less frequent episodic illiquidity but cause contagion when cooperation breaks down why is illiquidity rare and episodic pastor stambaugh 2003 detect only 14 aggregate low liquidity months over the time period 1962 to 1999 despite being of significant magnitude most of the episodes were short lived and were followed by long periods of liquidity 1 the origin of this empirical observation still remains a puzzle in this paper we attempt to shed light on this puzzle by developing a theoretical model in which a breakdown in cooperation between traders in the market manifests itself in predatory trading this mechanism leads to sudden and short lived illiquidity we develop a dynamic model of trading based on liquidity needs during each period a liquidity event may occur in which a trader is required to liquidate a large block of an asset in a relatively short time period this need for liquidity is observed by a tight oligopoly whose members may choose to predate or cooperate predation involves racing and fading the distressed trader to the market

how do foreign firms patent in emerging economies with weak appropriability regimes archetypes and motives abstract foreign firms patent in emerging economies with weak appropriability regimes at an increasing rate this phenomenon constitutes a paradox since in such a setting foreign firms should have weak incentives to patent in an attempt to resolve this paradox we conducted an inductive analysis of 11 foreign firms that patent in such a setting using the case of china as our empirical context we identify four archetypes of foreign firms and three key antecedents the interaction of which determines which archetype a firm can be subsumed under our study complements the developed economy focus of the extant appropriation literature by adding an international perspective we extend previous econometric studies by identifying salient factors on the firm level that determine the extent to which a foreign firm patents in emerging economies with a weak appropriability regime highlighting that the extent of a firm s motivation to maintain its freedom to operate can supersede imitability concerns we also comment on the practical implications of these contributions for managers of foreign firms highlighting a structural conflict of interest between foreign firms from developed economies and the development goals of an emerging economy we point to the generalizability of our results to a wide range of other emerging economies worldwide

green accounting for greener energy abstract the first step towards the widespread use of renewable energy sources and preservation of our environment for the people of the future is to adopt the green accounting standards that translate socially and environmentally responsible behavior into monetary terms the only language businesses understand these standards have the potential of switching on the red light for all pollution causing power plants and those depleting the natural capital in any way be it over harvesting the forests or exhausting the underground treasures coal oil natural gas etc this paper will show how green accounting can help in changing the focus from the economic welfare to the total societal welfare acknowledging the fact that human society is an integral part of the natural world the paper will also briefly present the software developed by the authors that introduce the green accounting principles into the investment appraisal process aiming at encouraging investments into renewable energy the tool is also useful as a platform facilitating calibration of economic financial instruments like environmental taxes of governmental incentives that are usually to boost renewable energy sector the comparative analysis of investment into biofuel powered combined heat and power production plant using two types of investment valuation standards one based on conventional cash flow analysis the other based on green accounting standards is detailed in the paper the analysis is performed as a part of the european commission framework program project aftur undertaken by the consortium consisting of respectful european research establishments in renewable energy area as well as major european biofuel powered turbine producers the results show that the wider adoption of green accounting standards would induce the unprecedented growth of the renewable energy sector because it would make the investment into renewable energy attractive for investors

how trade related are intellectual property rights abstract there is little empirical evidence about whether differing international levels of patent protection influence trade flows if a nation strengthens its patent laws it could experience higher or lower imports we specify an empirical model in which deviations of bilateral sectoral imports from anticipated levels are related to income trade barriers and patent laws patent regulations in the importing country are corrected for endogeneity through the use of instrumental variables the results of the final equations indicate that increasing patent protection has a positive impact on bilateral manufacturing imports into both small and large developing economies

transaction costs and asset prices a dynamic equilibrium model in this article we study the effects of transaction costs on asset prices we assume an overlapping generations economy with a riskless liquid bond and many risky stocks carrying proportional transaction costs we obtain stock prices and turnover in closed form surprisingly a stock s price may increase in transaction costs and a more frequently traded stock may be less adversely affected by an increase in transaction costs calculations based on the marginal investor overestimate the effects of transaction costs for realistic parameter values transaction costs have very small effects on stock prices but large effects on turnover

knowledge and competitive advantage the coevolution of firms technology and national institutions this issue of jibs offers reviews of two books that analyse the dynamic interaction between the business environments and business strategies in very different ways the institutional underpinnings for business strategies are a major research topic for comparative management aiming to explain why in different contexts firms pursue different strategies and with different implications for performance j peter murman in knowledge and competitive advantage takes a historical perspective focusing on the co evolutionary processes between national innovation systems business strategies and performance this books thus adds to the industry level longitudinal research reviewed in jibs no 4 2003 tom murtha et al s managing new industry creation and david mckendrick et al s from silicon valley to singapore

how do foreign patent rights affect u s exports affiliate sales and licenses abstract this paper analyzes how foreign patent rights fprs affect us exports affiliate sales and licenses our approach is distinctive in three ways we apply ownership location and internalization concepts to link fprs with servicing decisions we account for the simultaneity of servicing decisions we estimate the relative effects of fprs on exports affiliate sales and licenses empirical findings show strong fprs increase us affiliate sales and licenses particularly across countries with strong imitative abilities further fprs have a larger effect on us knowledge transferred outside the country and firm relative to knowledge located inside the country and internalized inside the firm

international protection of intellectual property we study the incentives that governments have to protect intellectual property in a trading world economy we consider a world economy with ongoing innovation in two countries that differ in market size and in their capacities for innovation after describing the determination of national patent policies in a non cooperative regime of patent protection we ask why is intellectual property better protected in the north than in the south we also study international patent agreements by deriving the properties of an efficient global regime of patent protection and asking whether harmonization of patent policies is necessary or sufficient for global efficiency jel o34 f13 during the 1980 s and early 1990 s the united states and several european countries expressed strong dissatisfaction with what they deemed to be inadequate protection of intellectual property in many developing countries the developed countries made the upgrading of intellectual property rights iprs one of their highest priorities for the uruguay round of trade talks their efforts bore fruit in the agreement on traderelated aspects of intellectual property rights trips which was approved as part of the final act of the uruguay round trips establishes minimum standards of protection for several categories of intellectual property for example in the area of new technology it essentially harmonizes

patent protection and the industrial composition of multinational activity evidence from u s multinational firms using data on u s firms technology licensing to local agents in developing countries this paper examines the impact of patent protection on internal and arms length technology transfer the effects of protection vary across products according to their complexity consistent with theories of internalization we find that patent reforms enable local firms to attract more arms length technology transfer especially of simple products which are relatively easy to imitate affiliated licensing also rises among simple products but falls among complex products the results withstand several robustness checks including controlling for endogeneity by using colonial origin as an instrument and are equally strong whether patent protection is measured by its intensity or by the timing of reforms the results have significance for patent policy in the developing world where access to knowledge is critical through arms length technology contracts proprietary knowledge diffuses beyond firm boundaries enabling local agents to access not only the protected technology but also know how

an institution based view of global ipr history leveraging the use of history to advance international business research this article focuses on the crucial debate over intellectual property rights ipr between the united states and china ironically during the 19th century the united states was not a leading ipr advocate as it is today but was a leading ipr violator developing an institution based view of ipr history we identify three underlying theoretical mechanisms that help to explain ipr in the two countries path dependence long term processes and institutional transitions we argue that both the us refusal to protect foreign ipr in the 19th century and the current chinese lack of enthusiasm to meet us ipr demands embody rational responses to their respective situations however given long term processes with intensifying isomorphic pressures institutional transitions in favor of better ipr protection are quite possible finally going above and beyond these two countries we draw on the ipr history in over ten other countries to develop a more globally generalizable framework which in turn contributes to the key question of how history matters