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The effect of patent enforcement strength and FDI on economic growth
Cranfield Sch Management, Bedford, England..
Cranfield Sch Management, Bedford, England..
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Univ Liverpool, Sch Management, Liverpool, Merseyside, England..
2016 (English)In: Multinational Business Review, ISSN 1525-383X, Vol. 24, no 4, 334-353 p.Article in journal (Refereed) Published
Abstract [en]

Purpose - This paper aims to study the effects of the strength of patent enforcement on economic growth following the signing of the agreement on Trade-Related Aspects of Intellectual Property Rights and the role of inward foreign direct investment (FDI) flows in mediating and enhancing this relationship. Design/methodology/approach - Following a generalized method of moments methodology, use is made of a new longitudinal index measuring the strength of enforcement-related aspects of patent systems. Findings - Stronger levels of patent enforcement have a significant positive effect on the economic growth of both developed and developing countries. Importantly, inward FDI flows have a mediating role in positively boosting this effect for all countries and particularly for developed countries. Originality/value - This is the first empirical study of the role of the strength of patent enforcement ("law in action") in stimulating economic growth, as previous empirical studies have focused on the effect of the strength of patent law protection ("law on the books"). The failure in the past to allow for "law in action" was mainly due to the lack of available data that could proxy for the strength of patent enforcement levels in a country. This study utilizes a newly published, longitudinal index that captures the strength of the enforcement-related aspects of patent systems.

Place, publisher, year, edition, pages
2016. Vol. 24, no 4, 334-353 p.
Keyword [en]
FDI, Economic growth, TRIPS, Intellectual property, Patent enforcement, Patent systems
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-317719DOI: 10.1108/MBR-07-2016-0024ISI: 000394389700002OAI: oai:DiVA.org:uu-317719DiVA: diva2:1082563
Available from: 2017-03-17 Created: 2017-03-17 Last updated: 2017-03-17Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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