Patently Different? How Does the Strength of Patents Influence Globalization of R&D? Empirical Evidence from the 2004 Indian Patent Reforms

31 Pages Posted: 16 Jul 2011 Last revised: 3 Jan 2015

See all articles by Anand Nandkumar

Anand Nandkumar

Indian School of Business (ISB), Hyderabad

Kannan Srikanth

Singapore Management University - Management Department; University of Southern Denmark - Strategic Organization Design unit (SOD)

Date Written: April 30, 2011

Abstract

There is an increasing trend for Multi-National Enterprises (MNEs) to off-shore R&D activities to developing countries where Intellectual Property regimes (IP) are weak. Prior work in international trade theory suggests that there is limited technology transfer by MNE to destinations with weak IP regimes. However, there is considerable evidence that MNE offshore significant levels of R&D, over and above what is required for local customization or government enforced technology transfers. In this paper, using a unique natural experiment that relates to the recently enacted patent reforms in India, we contribute towards understanding how IP regime strength influences the division of labor in technology generation activities within a firm but across locations.

JEL Classification: K11, O32, 034

Suggested Citation

Nandkumar, Anand and Srikanth, Kannan, Patently Different? How Does the Strength of Patents Influence Globalization of R&D? Empirical Evidence from the 2004 Indian Patent Reforms (April 30, 2011). Available at SSRN: https://ssrn.com/abstract=1885246 or http://dx.doi.org/10.2139/ssrn.1885246

Anand Nandkumar (Contact Author)

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

Kannan Srikanth

Singapore Management University - Management Department ( email )

50 Stamford Rd
Singapore, 178899
Singapore

University of Southern Denmark - Strategic Organization Design unit (SOD) ( email )

Campusvej 55
Odense, DK-5230 M
Denmark

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