International Technology Licensing, Intellectual Property Rights, and Tax Havens

43 Pages Posted: 27 Nov 2019 Last revised: 3 Jan 2020

See all articles by Ana Maria Santacreu

Ana Maria Santacreu

Federal Reserve Banks - Federal Reserve Bank of St. Louis

Date Written: November, 2019

Abstract

This paper investigates the determinants of international technology licensing using data for 41 countries during 1996-2012. A multi-country model of innovation and international technology licensing yields a dynamic structural gravity equation for royalty payments as a function of fundamentals, including: (i) imperfect intellectual property protection and (ii) tax havens. The gravity equation is estimated using nonlinear methods. The model’s fundamentals account for 56% of the variation in royalty payments. Counterfactual analysis sheds light on the role of intellectual property rights and tax havens on international technology licensing.

Keywords: Technology diffusion, royalty payments, intellectual property rights

JEL Classification: F12, O33, O41, O47

Suggested Citation

Santacreu, Ana Maria Maria, International Technology Licensing, Intellectual Property Rights, and Tax Havens (November, 2019). FRB St. Louis Working Paper No. 2019-31, Available at SSRN: https://ssrn.com/abstract=3494171 or http://dx.doi.org/10.20955/wp.2019.031

Ana Maria Maria Santacreu (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

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