Intellectual Property Rights, Internalization, and Technology Transfer

FTC Bureau of Economics Working Paper No. 250

35 Pages Posted: 17 Jul 2003

See all articles by Michael W. Nicholson

Michael W. Nicholson

US Agency for International Development

Date Written: July 2002

Abstract

Intellectual property protection affects the manner in which multinational enterprises facilitate technology transfer from the innovating North to the developing South. Firms with products that are complex or technologically sophisticated will tend to internalize production through foreign direct investment. Firms that face a lower risk of imitation, or are less technically advanced, will tend to license production to non-affiliated Southern firms. Changes in intellectual property protection affect the level and the composition of technology transfer, depending on the value of the firm's proprietary asset.

Keywords: multinational enterprise, licensing, intellectual property rights, technology transfer, foreign direct investment

JEL Classification: F23, L24, O34

Suggested Citation

Nicholson, Michael W., Intellectual Property Rights, Internalization, and Technology Transfer (July 2002). FTC Bureau of Economics Working Paper No. 250, Available at SSRN: https://ssrn.com/abstract=393661 or http://dx.doi.org/10.2139/ssrn.393661

Michael W. Nicholson (Contact Author)

US Agency for International Development ( email )

1300 Pennsylvania Avenue NW
Washington, DC 20577
United States

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