Do intellectual property rights promote foreign direct investment inflows and technological exports in developing and developed countries?
ISSN: 1463-6689
Article publication date: 26 January 2024
Issue publication date: 26 March 2024
Abstract
Purpose
This study aims to analyse the intellectual property rights (INPR), foreign direct investment (FDI) inflows and technological exports of 32 developing and developed countries for the period of 2006–2020.
Design/methodology/approach
Diagnostic tests were used to confirm the panel least squares, fixed effect, random effect, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares estimator results as well as to increase the robustness.
Findings
According to the findings for the developing countries, trademark, patent and industrial design applications, each had a significant positive long-run effect on FDI inflows. In addition, there was a significant positive long-run relationship between patent applications and medium- and high-technology exports. Meanwhile, trademark and industrial design applications had a significant negative long-term effect on medium- and high-technology exports. In developed countries, patent and industrial design applications each have a significant negative long-term on medium- and high-technology exports. Furthermore, patent and trademark applications each had a significant negative long-run effect on FDI inflows.
Originality/value
This study contributes significantly to the focus that host countries evaluate the technology gaps between domestic and foreign investors at different industry levels to select the best INPR rules and innovation process by increasing international cooperation. Furthermore, the host countries should follow the structure–conduct–performance paradigm based on analysis of the market structure, strategic firms and industrial dynamics systems.
Keywords
Acknowledgements
Compliance with ethical standards.
Availability of data and material: World Development Indicators (WDI) 2021, World Bank, retrieved on 01–12-2021 Available at the link: https://data.worldbank.org/
Conflict of interest: The authors declare that they have no conflict of interest.
Ethical standard: The authors declare that this research article is in compliance with the ethical standards of this journal.
Informed consent: This article does not contain any information that requires informed consent.
Funding: There is no funding for this manuscript.
Authors’ contributions: All authors have the same contribution. All authors read and approved the final manuscript.
Citation
ALshubiri, F. and Al Ani, M.K. (2024), "Do intellectual property rights promote foreign direct investment inflows and technological exports in developing and developed countries?", Foresight, Vol. 26 No. 2, pp. 272-299. https://doi.org/10.1108/FS-05-2023-0096
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited