The Effects Of IPRs Protection On International Technology Diffusion Based On Threshold Regression Techniques

This paper explors whether the effect of Intellectual Property Rights (IPRs) protection on international technology diffusion is dependent on other factors using recently developed threshold regression techniques. it considers respectively thresholds based on the level of initial GDP per capita (measureing the economy scope ),the ratio of trade to GDP(measureing the degree of openness),the R&D input intensity(measureing the local enterprise's ability to imitate). First, analysis the potential factors which could influence the effect of IPRs protection on technology diffusion by existing international technology diffusion model.Then GPI amendment indicator is designed to measure the level of IPRs protection of China and of every provinces from 2001 to 2005. Then using cross-sectional data of provinces, test the effect of IPR protection on different ways of international technology diffusion, identify the threshold value by threshold regression techniques.Research shows that :(1) The effect of IPRs on voluntary transfer of technology and non-voluntary technical spillover is different, the former is more sensitive to the changes of the level of IPRs protection;(2) there are non-linear threshold effects.Economic development, the opening of the market, local enterprise's ability to imitate are tested as the threshold variables. Only when the per capita GDP reached 1,000 US dollars, the strenghten of IPRs can promote technology transfer, when the per capita GDP reached 1,800 US dollars, this ptomotion will be obvious. The low level of competition in the market areas, namely the ratio of trade to GDP below 50%, strengthening the level of IPRs protection increase of the technological monopoly of technology owners, resulting in decline of technology difussion.So IPRs can have a positive effect in more competitive market. At the same time, the R&D input intensity have to reached 0.86 percent,which means the local enterprise have the ability to undertake foreign technology, then the strenghten of IPRs can present positive effects.