The Research Of Intellectual Property Protection And International Profit Transfer Based On FDI

"It could benefit lagging country through attracting FDI by strengthening the intellectual property rights protection." Can this proposition be the support for lagging country to strengthen their intellectual property rights protection? This paper try to involve the influence of IPR protection to FDI, innovation, domestic imitation and overseas imitation into a Two stage dynamic Game Model, discussing the effect of strengthen the IPR protection aiming at attracting FDI by lagging country. The analysis shows that, it will attract more FDI by strengthening the IPR protection, but not necessarily benefits. The reasons are as follows: The FDI opts to choose such industries that generate the smallest interest to the host country; Only if the best scale of IPR protection or it will generate massive international profit transfer; Through strengthens the IPR protection, the increased profit obtained from new industry which FDI comes into being will be counterbalanced by the reduced profit from the industries that FDI has exist. Therefore, to obtain more technology spillovers, it is not the best choice for developing countries to attracting FDI by strengthening IPR protection. By providing the best scale of IPR protection, along with other strategies and policies, such as enhancing Tariff Tax, providing subsidy to domestic R&D research and improving the absorbing ability and the efficiency of R&D research, The developing countries could maximize domestic welfare and generate smallest profit transferring to multinational corporate.