nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒05‒09
four papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Tax attractiveness and the location of patents By Dinkel, Andreas; Schanz, Deborah
  2. Intellectual Property Protection And Drug Plan Coverage: Evidence From Ontario By Paul Grootendorst; Minsup Shim; Adam Falconi; Tyler Robinson; Ethar Ismail; Joel Lexchin
  3. Is Co-Invention Expediting Technological Catch Up? A Study of Collaboration between Emerging Country Firms and EU inventors By Elisa Giuliani; Arianna Martinelli; Roberta Rabellotti
  4. The Market Value of technological innovation; evidence from European patents By Rekik, Sabrine

  1. By: Dinkel, Andreas; Schanz, Deborah
    Abstract: This paper analyzes the impact of taxation on the location of patents within multinational groups. Based on groups with parents from 36 countries globally and their patent holdings in 36 European countries, we provide insight into the determinants of three subsequent decisions: (1) the decision of whether to locate patents abroad; (2) in which countries to locate patents; and (3) how many patents to locate in each country. Our findings indicate that multinationals take the tax attractiveness of countries into account when making these decisions. Specifically, we show that the statutory tax rate, the taxation of royalties, R&D incentives, and transfer pricing rules help to explain the patent-location choices of multinationals.
    Keywords: International taxation,Tax attractiveness,Intellectual property,Location decision,Multinational enterprise
    JEL: H25 H73 F23
    Date: 2015
  2. By: Paul Grootendorst; Minsup Shim; Adam Falconi; Tyler Robinson; Ethar Ismail; Joel Lexchin
    Abstract: Canada has strengthened intellectual property (IP) protections for pharmaceutical drugs several times over the last three decades. These changes were intended to lengthen the period of market exclusivity for new brand drugs and thereby allow them to earn additional sales revenues that could be used to recoup R&D investments. Whether these policies achieved their objective of increasing sales revenues is unclear, however. Whether they did depends on the coverage decisions of the major drug plans. Longer periods of market exclusivity amount to a price increase for brand drugs. In response to higher prices, drug plans could have become more selective in the drugs they cover, and they could have waited longer to list these drugs on their formularies, reducing formulary exclusivity periods. To investigate, we assembled data on the coverage of brand drugs approved for use in Canada over the last 35 years by the Ontario Drug Benefit (ODB) program, the largest and most influential drug plan in Canada. We find that, except for a brief period of time, the marked strengthening of Canadian pharmaceutical IP laws over the last 25 years have not lead to an increase in the exclusivity period that brand-name drugs enjoy on the ODB formulary. In fact, exclusivity periods have been dropping more or less consistently since the mid 1970s. The causes of these changes remain to be explored.
    Keywords: intellectual property, pharmaceuticals, public drug coverage, ontario
    JEL: I18 I13 O34
    Date: 2015–05
  3. By: Elisa Giuliani; Arianna Martinelli; Roberta Rabellotti
    Abstract: Firms from emerging countries such as Brazil, India, and China (BIC) are going global, and Europe is attracting around one-third of their direct outward investments. Growing internationalization constitutes an opportunity for technological catch up. In this paper we analyze BIC firms' cross-border inventions with European Union (EU-27) actors, during the period 1990-2012. Our results suggest that cross-border inventions represent an opportunity for BIC firms to accumulate technological capabilities, access frontier knowledge, and appropriate the property rights of co-inventions. This paper contributes to the understanding of the catching up process by emerging country firms, and offers some policy recommendations.
    Keywords: Emerging Countries, Multinationals, Technological Catch Up, Patents, European Union
    Date: 2015–04–24
  4. By: Rekik, Sabrine
    Abstract: This paper contributes to literature by giving more precise measures to technological innovation in order to estimate its economic value and assess its impact on the financial performance of companies in Europe. Focus is given to European patent system which is different from the American one. Financial and innovation data are collected during 1990- 2012, for 599 companies belonging to 15 industries. According to market value approach, the relationship between market-to-book ratio and knowledge assets is proved to be positive and significant. Innovation is more valuable when it contributes to wider knowledge transfer, has larger geographical and technological scopes and radical character.
    Keywords: Technological innovations; Economic value; Financial performance of companies; European patent system; Knowledge transfer;
    JEL: G31 L25 O32 O33
    Date: 2015–06

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