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Foreign Direct Investment, Intellectual Property Rights, and Productivity Growth

In: Foreign Direct Investment and Small and Medium Enterprises Productivity and Access to Finance

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  • Sasatra Sudsawasd
  • Santi Chaisrisawatsuk

Abstract

Using panel data for 57 countries over the period of 1995–2012, this chapter investigates the impact of intellectual property rights (IPR) processes on productivity growth. The IPR processes are decomposed into three stages — innovation process, commercialization process, and protection process. The chapter finds that better IPR protection is directly associated with productivity improvements only in developed economies. In addition, the contribution of IPR processes on growth through foreign direct investment (FDI) appears to be quite limited. Only inward FDI in developed countries which creates better innovative capability leads to higher growth. In connection with outward FDI, only the increase in IPR protection and commercialization are proven to improve productivity in the case of developing countries, particularly when the country acts as the investing country.

Suggested Citation

  • Sasatra Sudsawasd & Santi Chaisrisawatsuk, 2015. "Foreign Direct Investment, Intellectual Property Rights, and Productivity Growth," World Scientific Book Chapters, in: Khee Giap Tan & Kong Yam Tan (ed.), Foreign Direct Investment and Small and Medium Enterprises Productivity and Access to Finance, chapter 4, pages 57-75, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814678810_0004
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