This paper studies how the intellectual property right (IPR) regime in destination countries influences the decision of firms between procurement from related parties and from independent suppliers while the latter may involve technology sharing or not. Using firm-level data on the mode choice for each transaction and a new product complexity measure, results confirm that firms are generally reluctant to source complex goods from outside firm boundaries. However, when technology is shared, IPRs promote outsourcing of more complex goods whereas without technology sharing, IPRs promote outsourcing of less complex products that are prone to reverse engineering and simpler to imitate.

Naghavi, A., Spies, J., Toubal, F. (2015). Intellectual property rights, product complexity and the organization of multinational firms. CANADIAN JOURNAL OF ECONOMICS, 48(3), 881-902 [10.1111/caje.12161].

Intellectual property rights, product complexity and the organization of multinational firms

NAGHAVI, ALIREZA JAY;TOUBAL, FARID
2015

Abstract

This paper studies how the intellectual property right (IPR) regime in destination countries influences the decision of firms between procurement from related parties and from independent suppliers while the latter may involve technology sharing or not. Using firm-level data on the mode choice for each transaction and a new product complexity measure, results confirm that firms are generally reluctant to source complex goods from outside firm boundaries. However, when technology is shared, IPRs promote outsourcing of more complex goods whereas without technology sharing, IPRs promote outsourcing of less complex products that are prone to reverse engineering and simpler to imitate.
2015
Naghavi, A., Spies, J., Toubal, F. (2015). Intellectual property rights, product complexity and the organization of multinational firms. CANADIAN JOURNAL OF ECONOMICS, 48(3), 881-902 [10.1111/caje.12161].
Naghavi, Alireza; Spies, Julia; Toubal, Farid
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/543057
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