Ansis Publications

Global Technology Transfer Driven by Research, Economic Growth and IP Laws

Journal of Digital Business and International Marketing

Received On : 26 December 2024

Revised On : 13 February 2025

Accepted On : 17 March 2025

Published On : 05 April 2025

Volume 01, Issue 02, 2025

Pages : 099–108

PDF

Download

DOI

https://doi.org/10.64026/JDBIM/2025011

Article Views

Abstract

We describe the factors that affect international technology transfer through the level of R&D expenditure, economic development, and Intellectual Property Rights (IPR) protection. Analyzing a large and diverse sample from the World Bank Development Indicators, national statistics on R&D, and the Global Competitiveness Index, the paper uses a gravity model with time-exporter and time-importer fixed impacts to identify variations in technology transfer. Poisson Pseudo Maximum Likelihood (PPML) degeneration examines royalty payments, and an augmented model includes the IPR quality and technology intensity. We found out that export of technology increases with increase in both R&D spending and R&D productivity while import of technology is higher and more probable in large and less remote countries. The extended model increases the fit from 45% to 57% by the inclusion of IPR protection, and technology intensity. The findings of decomposition analysis reveal that R&D and GDP have a high sensitivity to developed countries while remoteness and GDP have high sensitivity to developing countries. With respect to technology transfer, the study demonstrates that there are adverse effects of weak IPR protection and geographical isolation, which is evidenced by the large gaps for nations like India, China, and Turkey. The implications of these results for technology transfer strategy and the improvement of international cooperation are discussed.

Keywords

R&D Spending, GDP Per Capita, Intellectual Property Rights (IPR) Protection, Global Competitiveness Index.

Reference

T. Homer-Dixon, “The ingenuity gap: Can poor countries adapt to resource scarcity?,” Population and Development Review, vol. 21, no. 3, p. 587, Sep. 1995, doi: 10.2307/2137751.
R. Frieden, “Lessons from broadband development in Canada, Japan, Korea and the United States,” Telecommunications Policy, vol. 29, no. 8, pp. 595–613, Sep. 2005, doi: 10.1016/j.telpol.2005.06.002.
J. G. Williamson, “Regional Inequality and the Process of National Development: A description of the patterns,” Economic Development and Cultural Change, vol. 13, no. 4, Part 2, pp. 1–84, Jul. 1965, doi: 10.1086/450136.
J. F. Reinganum, “On the Diffusion of New Technology: A Game Theoretic Approach,” The Review of Economic Studies, vol. 48, no. 3, p. 395, Jul. 1981, doi: 10.2307/2297153.
C. P. Braga, “Reforming intellectual property rights regimes: challenges for developing countries,” Journal of International Economic Law, vol. 1, no. 4, pp. 537–554, Dec. 1998, doi: 10.1093/jiel/1.4.537.
D. Archibugi and A. Filippetti, “The Globalisation of Intellectual Property Rights: Four learned lessons and Four theses,” Global Policy, vol. 1, no. 2, pp. 137–149, May 2010, doi: 10.1111/j.1758-5899.2010.00019.x.
L. Yang and K. E. Maskus, “Intellectual property rights, technology transfer and exports in developing countries,” Journal of Development Economics, vol. 90, no. 2, pp. 231–236, Nov. 2009, doi: 10.1016/j.jdeveco.2008.11.003.
J. Hsu and Y.-E. Tiao, “Patent rights protection and foreign direct investment in Asian countries,” Economic Modelling, vol. 44, pp. 1–6, Jan. 2015, doi: 10.1016/j.econmod.2014.08.018.
A. Dechezleprêtre, M. Glachant, and Y. Ménière, “What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data,” Environmental and Resource Economics, vol. 54, no. 2, pp. 161–178, Aug. 2012, doi: 10.1007/s10640-012-9592-0.
L. Erdal and İ. Göçer, “The Effects of Foreign Direct Investment on R&D and Innovations: Panel Data Analysis for Developing Asian Countries,” Procedia - Social and Behavioral Sciences, vol. 195, pp. 749–758, Jul. 2015, doi: 10.1016/j.sbspro.2015.06.469.
D. Kyrkilis and S. Koboti, “Intellectual property rights as determinant of foreign direct investment entry mode: the case of Greece,” Procedia Economics and Finance, vol. 19, pp. 3–16, Jan. 2015, doi: 10.1016/s2212-5671(15)00003-9.
G. Valacchi, N. Doytch, and N. Yonzan, “Impact of outward foreign direct investments on patent activity of Greenfield multinationals,” Technological Forecasting and Social Change, vol. 173, p. 121168, Dec. 2021, doi: 10.1016/j.techfore.2021.121168.
S. Deqiang, C. Zhijun, M. Hajduk-Stelmachowicz, A. R. Larik, and M. Z. Rafique, “The role of the global value chain in improving trade and the sustainable competitive advantage: evidence from China’s manufacturing industry,” Frontiers in Environmental Science, vol. 9, Nov. 2021, doi: 10.3389/fenvs.2021.779295.
M. Callon and V. Rabeharisoa, “Research ‘in the wild’ and the shaping of new social identities,” Technology in Society, vol. 25, no. 2, pp. 193–204, Apr. 2003, doi: 10.1016/s0160-791x(03)00021-6.
E. Gómez-Herrera, “Comparing alternative methods to estimate gravity models of bilateral trade,” Empirical Economics, vol. 44, no. 3, pp. 1087–1111, Mar. 2012, doi: 10.1007/s00181-012-0576-2.
D. S. Jacks, C. M. Meissner, and D. Novy, “Trade costs in the first wave of globalization,” Explorations in Economic History, vol. 47, no. 2, pp. 127–141, Apr. 2010, doi: 10.1016/j.eeh.2009.07.001.
J. Harrigan, “Specialization and the volume of trade: do the data obey the laws?,” SSRN Electronic Journal, Jan. 2001, doi: 10.2139/ssrn.921392.
A.-M. Audet, “Medical Practice Guidelines: current activities and future directions,” Annals of Internal Medicine, vol. 113, no. 9, p. 709, Nov. 1990, doi: 10.7326/0003-4819-113-9-709.
J. R. Burch, E. M. Clarke, K. L. McMillan, D. L. Dill, and L. J. Hwang, “Symbolic model checking: 1020 States and beyond,” Information and Computation, vol. 98, no. 2, pp. 142–170, Jun. 1992, doi: 10.1016/0890-5401(92)90017-a.
Y. Barlas, “Formal aspects of model validity and validation in system dynamics,” System Dynamics Review, vol. 12, no. 3, pp. 183–210, Jan. 1996, doi: 10.1002/(sici)1099-1727(199623)12:3.
L. Capoani, “Review of the gravity model: origins and critical analysis of its theoretical development,” SN Business & Economics, vol. 3, no. 5, Apr. 2023, doi: 10.1007/s43546-023-00461-0.
O. Y. R. Goyeneche, M. Ramirez, J. Schot, and F. Arroyave, “Mobilizing the transformative power of research for achieving the Sustainable Development Goals,” Research Policy, vol. 51, no. 10, p. 104589, Dec. 2022, doi: 10.1016/j.respol.2022.104589.
A. Panagariya, “Preferential Trade Liberalization: the Traditional Theory and New Developments,” Journal of Economic Literature, vol. 38, no. 2, pp. 287–331, Jun. 2000, doi: 10.1257/jel.38.2.287.
H. Long, Y. Zhang, L. Ma, and S. Tu, “Land use Transitions: progress, challenges and Prospects,” Land, vol. 10, no. 9, p. 903, Aug. 2021, doi: 10.3390/land10090903.
Richar. T. Carson, Y. Jeon, and D. R. McCUBBIN, “The relationship between air pollution emissions and income: US Data,” Environment and Development Economics, vol. 2, no. 4, pp. 433–450, Nov. 1997, doi: 10.1017/s1355770x97000235.
D. Karemera, V. I. Oguledo, and B. Davis, “A gravity model analysis of international migration to North America,” App
R. Ramos and J. Suriñach, “A gravity model of migration between the ENC and the EU,” Tijdschrift Voor Economische En Sociale Geografie, vol. 108, no. 1, pp. 21–35, Jul. 2016, doi: 10.1111/tesg.12195.
P. Aghion, P. A. David, and D. Foray, “Science, technology and innovation for economic growth: Linking policy research and practice in ‘STIG Systems,’” Research Policy, vol. 38, no. 4, pp. 681–693, May 2009, doi: 10.1016/j.respol.2009.01.016.
K. Aiginger and M. Falk, “Explaining Differences in Economic Growth among OECD Countries,” Empirica, vol. 32, no. 1, pp. 19–43, Mar. 2005, doi: 10.1007/s10663-005-1977-7.
W. Hao, F. Rasul, Z. Bhatti, M. S. Hassan, I. Ahmed, and N. Asghar, “A technological innovation and economic progress enhancement: an assessment of sustainable economic and environmental management,” Environmental Science and Pollution Research, vol. 28, no. 22, pp. 28585–28597, Feb. 2021, doi: 10.1007/s11356-021-12559-9.
J. Huang, X. X. Lu, and J. M. Sellers, “A global comparative analysis of urban form: Applying spatial metrics and remote sensing,” Landscape and Urban Planning, vol. 82, no. 4, pp. 184–197, Oct. 2007, doi: 10.1016/j.landurbplan.2007.02.010.
G. Shmueli, “To explain or to predict?,” Statistical Science, vol. 25, no. 3, Aug. 2010, doi: 10.1214/10-sts330.
I. Martínez-Zarzoso and S. Chelala, “Trade agreements and international technology transfer,” Review of World Economics, vol. 157, no. 3, pp. 631–665, Jun. 2021, doi: 10.1007/s10290-021-00420-7.
Z. Deng, R.-J. “Bryan” Jean, and R. R. Sinkovics, “Rapid expansion of international new ventures across institutional distance,” Journal of International Business Studies, vol. 49, no. 8, pp. 1010–1032, Oct. 2018, doi: 10.1057/s41267-017-0108-6.
E. Fujii, “What does trade openness measure?,” Oxford Bulletin of Economics and Statistics, vol. 81, no. 4, pp. 868–888, Nov. 2018, doi: 10.1111/obes.12275.
J. Fagerberg, M. Srholec, and M. Knell, “The Competitiveness of Nations: Why some countries prosper while others fall behind,” World Development, vol. 35, no. 10, pp. 1595–1620, Oct. 2007, doi: 10.1016/j.worlddev.2007.01.004.
L. G. Zucker, M. R. Darby, and J. S. Armstrong, “Commercializing knowledge: university science, knowledge capture, and firm performance in biotechnology,” Management Science, vol. 48, no. 1, pp. 138–153, Jan. 2002, doi: 10.1287/mnsc.48.1.138.14274.
C. Henry and J. E. Stiglitz, “Intellectual property, dissemination of innovation and sustainable development,” Global Policy, vol. 1, no. 3, pp. 237–251, Oct. 2010, doi: 10.1111/j.1758-5899.2010.00048.x.
D. Encaoua, D. Guellec, and C. Martínez, “Patent systems for encouraging innovation: Lessons from economic analysis,” Research Policy, vol. 35, no. 9, pp. 1423–1440, Nov. 2006, doi: 10.1016/j.respol.2006.07.004.
D. Nersessian and R. Mancha, “From Automation to autonomy: legal and ethical responsibility Gaps in artificial intelligence innovation,” Michigan Technology Law Review, no. 27.1, p. 55, Jan. 2021, doi: 10.36645/mtlr.27.1.from.
D. M. Gould and W. C. Gruben, “The role of intellectual property rights in economic growth,” Journal of Development Economics, vol. 48, no. 2, pp. 323–350, Mar. 1996, doi: 10.1016/0304-3878(95)00039-9.
W. S. Comanor and F. M. Scherer, “Patent statistics as a measure of technical change,” Journal of Political Economy, vol. 77, no. 3, pp. 392–398, May 1969, doi: 10.1086/259522.
G. Dosi, L. Marengo, and C. Pasquali, “Knowledge, competition and innovation: Is strong IPR protection really needed for more and better innovations?,” Michigan Telecommunications and Technology Law Review, vol. 13, no. 2, pp. 471–485, Jan. 2007, [Online]. Available: https://iris.luiss.it/handle/11385/86012
G. M. Grossman and E. Helpman, “Endogenous innovation in the theory of growth,” The Journal of Economic Perspectives, vol. 8, no. 1, pp. 23–44, Feb. 1994, doi: 10.1257/jep.8.1.23.
L. H. Fang, J. Lerner, and C. Wu, “Intellectual Property Rights Protection, Ownership, and Innovation: Evidence from China,” Review of Financial Studies, vol. 30, no. 7, pp. 2446–2477, Apr. 2017, doi: 10.1093/rfs/hhx023.
Y. Chen and T. Puttitanun, “Intellectual property rights and innovation in developing countries,” Journal of Development Economics, vol. 78, no. 2, pp. 474–493, Dec. 2005, doi: 10.1016/j.jdeveco.2004.11.005.

CRediT Author Statement

The author reviewed the results and approved the final version of the manuscript.

Acknowledgements

The authors would like to thank to the reviewers for nice comments on the manuscript.

Funding

No funding was received to assist with the preparation of this manuscript.

Ethics Declarations

Conflict of interest

The authors have no conflicts of interest to declare that are relevant to the content of this article.

Availability of Data and Materials

Data sharing is not applicable to this article as no new data were created or analysed in this study.

Author Information

Contributions

All authors have equal contribution in the paper and all authors have read and agreed to the published version of the manuscript.

Corresponding Author

Rights and permissions

This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0).
https://creativecommons.org/licenses/by/4.0/.

This license permits unrestricted use, sharing, distribution, reproduction, and adaptation in any medium or format, including for commercial purposes, provided that appropriate credit is given to the original author(s) and the source, a link to the license is provided, and any changes made are indicated.

Copyright

© 2025 Modi Ranjith Kumar. The author(s) retain copyright of the work. The author(s) grant the Journal of Digital Business and International Marketing (JDBIM) and its publisher, Ansis Publications, the right of first publication and the right to identify itself as the original publisher of the article.

Cite this Article

Modi Ranjith Kumar, “Global Technology Transfer Driven by Research, Economic Growth and IP Laws”, Journal of Digital Business and International Marketing, vol.1, no.2, pp. 099–108, April 2025, doi: 10.64026/JDBIM/2025011.