The Research Of The Effects Of Intellectual Property Rights Protection In Target Countries On The Entry Modes Of Multinational Companies

With the continuous development of knowledge economy and the increasinglydeepening of economic globalization, the relationship between Intellectual propertyand international operations is keeping close. International business growing, andpresents the trend of more and more diverse, especially the technical factors of theinternational trade grows, and the developed country who has full advantage onintellectual property rights always keep the intellectual property rights as non-tariffbarriers. The important position of the protection of intellectual property rights in theinternational business development is growing. In this paper, many researchachievements of previous literature had been referenced to, and the patterns ofmultinational companies to enter foreign market was divided into export entry mode,investment entry mode and the contract mode included in the model in the first step.This classification method was widely covered and comprehensive. And in the secondstep, the studies of the factors of each entry modes of multinational companiesforeshadowed to the empirical analysis. In the third step, the paper built the multiplelinear regression model through the panel data of export entry mode, investment entrymode and the contract mode included to29target countries from1995to2012in theUSA. And then through building the multiple linear regression mode, the paperanalysized the influence which generated by the intellectual property rights protectionof target countries to the three entry modes of multinational corporations. In the end,in order to study the influence generated by the intellectual property rights protectionof target countries to the probability of selective among three entry modes ofmultinational corporations. The paper classified the entry mode of multinationalcorporations by using the clustering methodology. And then, according to the twoentry modes (investment and export) got from clustering methodology, paper analysisthe influence generated by the intellectual property rights protection of targetcountries to the probability of selective between investment and export entry modesof multinational corporations by using the method of linear probability model anddouble selection model.The research results show three conclusions:（1）The research results show threeconclusions:（2）The strength of intellectual property rights protection of targetcountries course different influences to investment entry mode and export entry mode. Compared with the export entry mode, more protection of intellectual property rightscould increase the property of multinational corporations select investment entrymode.(3) When the other conditions of target countries unchanged, strengthen ofeconomic freedom and reducing the culture gap would have more attraction toinvestment entry mode than export. It conforms to the trend of global economicdevelopment. Transnational investment become the mainstream in the internationalbusiness development of multinational corporations.