How do foreign patent rights affect U.S. exports, affiliate sales, and licenses?

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160 Scopus citations

Abstract

This paper analyzes how foreign patent rights (FPRs) affect US exports, affiliate sales, and licenses. Our approach is distinctive in three ways. We apply ownership, location, and internalization concepts to link FPRs with servicing decisions. We account for the simultaneity of servicing decisions. We estimate the relative effects of FPRs on exports, affiliate sales, and licenses. Empirical findings show strong FPRs increase US affiliate sales and licenses, particularly across countries with strong imitative abilities. Further, FPRs have a larger effect on US knowledge transferred outside the country and firm, relative to knowledge located inside the country and internalized inside the firm.

Original languageEnglish (US)
Pages (from-to)411-439
Number of pages29
JournalJournal of International Economics
Volume55
Issue number2
DOIs
StatePublished - Dec 6 2001

Keywords

  • Intellectual property rights
  • International trade
  • Licensing
  • Multinational firms

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