Intellectual Property Rights and Multinational Firms’ Modes of Entry
نویسندگان
چکیده
This paper studies the relationship between intellectual property rights (IPR) and the entry modes decision by multinational firms. A model is developed allowing firms to choose among export, foreign direct investment (FDI), and licensing. Firms in the recipient country may imitate the technology, and their abilities to do so depend both on the nature of each mode and on the level of IPR protections in that country. Empirical analysis is conducted on the 1995 data. It is shown that unlike the findings in the literature, however, strong IPR impacts positively on FDI more than on licensing. JEL classification: F1, L0
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