Firm Heterogeneity and Weak Intellectual Property Rights

July 1, 2007

Preview Citation

Format: Chicago

Stanley B Watt. Firm Heterogeneity and Weak Intellectual Property Rights, (USA: International Monetary Fund, 2007) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In weak intellectual property rights (IPR) environments, the imitation of proprietary technology by domestic firms has become a deterrent for foreign investment. Different multinationals may view this deterrent differently. This paper develops a model where firms with more technology are less likely to invest in weak IPR environments. If imitation is costly, the model predicts that multinationals with the lowest level and highest level of technology will invest in weak IPR environments, and multinationals with a moderate level of technology will invest only in strong IPR environments. Empirical analysis with firm level data is consistent with this non-monotonicity result.

Subject: Capital productivity, Foreign direct investment, Technology, Transportation, Wages

Keywords: Dependent variable, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/161
Stock No:

WPIEA2007161
ISBN:

9781451867251
ISSN:

1018-5941

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