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

Kristie Briggs, Walter G. Park

Research output: Contribution to journalArticle

6 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)1112-1144
Number of pages33
JournalJournal of International Trade and Economic Development
Volume23
Issue number8
DOIs
StatePublished - Nov 17 2014

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development
  • Aerospace Engineering

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