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There will be exports and licensing: The effects of patent rights and innovation on firm sales

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  • Kristie Briggs
  • Walter G. Park

Abstract

Previous work has focused on how intellectual property rights affect inward technology transfer. This paper is among the first to study whether patent rights contribute to outward technology transfers. Patent protection can affect the ability of firms to be sources of technology through its effects on innovation and commercialization. Using micro data, this paper finds that patent rights and innovation are positively associated with the exporting and licensing of firms, controlling for other determinants of technological capacity, although the effect is not symmetric across firms in all countries. Patent rights have a strong impact on the export and licensing activities of firms in developed countries, and only on the licensing activities of firms in developing countries. Moreover, transfers of technology develop sequentially - namely, exporting before licensing - due to the differing sunk costs of each type of entry. The results have implications for how innovation policies and activities contribute to the outward orientation of firms.

Suggested Citation

  • Kristie Briggs & Walter G. Park, 2014. "There will be exports and licensing: The effects of patent rights and innovation on firm sales," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1112-1144, December.
    • Handle: RePEc:taf:jitecd:v:23:y:2014:i:8:p:1112-1144
    DOI: 10.1080/09638199.2013.843199
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    References listed on IDEAS

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    1. Doraszelski, Ulrich & Jaumandreu, Jordi, 2006. "R&D and productivity: Estimating production functions when productivity is endogenous," MPRA Paper 1246, University Library of Munich, Germany.
    2. Keith E. Maskus, 2012. "Private Rights and Public Problems: The Global Economics of Intellectual Property in the 21st Century," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 5072, April.
    3. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
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    Cited by:

    1. Ridwan Ah Sheikh & Sunil Kanwar, 2024. "Revisiting the Impact of TRIPS on IPR-intensive Export Flows: Evidence from Staggered Difference-in-Differences," Working papers 351, Centre for Development Economics, Delhi School of Economics.
    2. Willoughby, Kelvin W. & Mullina, Nadezhda, 2021. "Reverse innovation, international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation," Technology in Society, Elsevier, vol. 67(C).
    3. Claire Brunel & Thomas Zylkin, 2022. "Do cross‐border patents promote trade?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 379-418, February.
    4. Keith E. Maskus & Lei Yang, 2018. "Domestic patent rights, access to technologies and the structure of exports," Canadian Journal of Economics, Canadian Economics Association, vol. 51(2), pages 483-509, May.
    5. Ivus, Olena & Park, Walter, 2019. "Patent reforms and exporter behaviour: Firm-level evidence from developing countries," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 129-147.
    6. Nam, Hyun-Jung & An, Yohan, 2017. "Patent, R&D and internationalization for Korean healthcare industry," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 131-137.

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