Patent Laws, Product Life-Cycle Lengths, and Multinational Activity
Abstract
Do intellectual property rights influence multinationals' manufacturing location decisions? My theoretical model indicates that countries with strong patent laws attract multinational activity, but only in sectors with relatively long product life cycles. By contrast, firms with short life-cycle technologies are insensitive, because offshore imitation is less likely to succeed before obsolescence. I document strong empirical regularities...
Paper Details
Title
Patent Laws, Product Life-Cycle Lengths, and Multinational Activity
Published Date
Jul 1, 2014
Journal
Volume
104
Issue
7
Pages
1979 - 2013
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Notes
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