Determinants of royalty terms: Evidence from technology import contracts of Japan † (Preliminary)

نویسنده

  • Sadao Nagaoka
چکیده

This paper examines the changes of royalty terms of technology import contracts of Japan in 1980s and 1990s, based on the sector-level panel data. Major findings are the following: (1) The share of high royalty contracts increased significantly in 1980s and 1990s, which, however, mainly reflected the change of the composition of imported technologies, especially the increasing share of software licenses. (2) According to our estimation, controlling industry fixed effects, an exclusivity provision and trademark licensing are accompanied with more high royalty contracts. It also shows that the increase of the incidence of cross-licensing contracts and the increase of R&D intensity of the industry tended to be associated with high royalty contracts. (3) After controlling these factors, the share of high royalty contracts increased significantly in the latter part of 1990s in the industries for which intellectual property rights are important and the restriction of sales territory to Japan is frequently imposed in the contracts. They seem to reflect the impact of stronger IPR policy of Japan since the middle part of 1990s.

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تاریخ انتشار 2003