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Affiliate and non-affiliate intellectual property transactions in international business: an empirical overview of the UK and USA

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  • Clegg, Jeremy
  • Cross, Adam R.

Abstract

This study investigates the pattern and growth of affiliate and non-affiliate international transactions in intellectual property (IP) for the USA and the UK. Using official data, it explores how far and in what ways the patterns of licensing and franchising activity accord with theoretical expectations. We find significant differences in the pattern of non-affiliate and affiliate transactions by country and region. While these can directly be linked to the extent of foreign direct investment (FDI) by the investing countries, it is also evident that the policy regime developments of the host countries, as well as the international (and regional) regime, have a bearing on the method by which intellectual property is exploited. Leading these are the degree of limitation in host market size, the degree of fragmentation of markets on a regional basis and, possibly, the excess transaction costs imposed on FDI by cultural and institutional barriers in certain countries.

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  • Clegg, Jeremy & Cross, Adam R., 2000. "Affiliate and non-affiliate intellectual property transactions in international business: an empirical overview of the UK and USA," International Business Review, Elsevier, vol. 9(4), pages 407-430, August.
    • Handle: RePEc:eee:iburev:v:9:y:2000:i:4:p:407-430
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    2. Papageorgiadis, Nikolaos & Cross, Adam R. & Alexiou, Constantinos, 2014. "International patent systems strength 1998–2011," Journal of World Business, Elsevier, vol. 49(4), pages 586-597.
    3. Yang, Deli, 2005. "Culture matters to multinationals' intellectual property businesses," Journal of World Business, Elsevier, vol. 40(3), pages 281-301, August.
    4. Jean-François Sattin, 2016. "Exploring the survival of patent licensing: some evidence from French foreign agreements," The Journal of Technology Transfer, Springer, vol. 41(3), pages 610-630, June.
    5. Fainshmidt, Stav & White, George O. & Cangioni, Carole, 2014. "Legal Distance, Cognitive Distance, and Conflict Resolution in International Business Intellectual Property Disputes," Journal of International Management, Elsevier, vol. 20(2), pages 188-200.
    6. Nakamura, Masao, 2005. "Joint venture instability, learning and the relative bargaining power of the parent firms," International Business Review, Elsevier, vol. 14(4), pages 465-493, August.
    7. Papageorgiadis, Nikolaos & Cross, Adam R. & Alexiou, Constantinos, 2013. "The impact of the institution of patent protection and enforcement on entry mode strategy: A panel data investigation of U.S. firms," International Business Review, Elsevier, vol. 22(1), pages 278-292.
    8. Lichtenthaler, Ulrich, 2009. "Product business, foreign direct investment, and licensing: Examining their relationships in international technology exploitation," Journal of World Business, Elsevier, vol. 44(4), pages 407-420, October.

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