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Are Stronger Intellectual Property Rights an Obstacle or a Condition for International Technology Transfer?

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Chapter Summary

This chapter focuses on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement's effect on technology transfer to developing countries. It also focuses on the comprehensive impact of intellectual property rights on internalized and externalized channels for technology transfer. Transfer of technology occurs through several channels, but there are a number of channels that are considered to be the most important. The awareness and importance of intellectual property rights have increased rapidly during recent years. Intellectual property rights are traditionally viewed as compensation to inventors and as an important incentive for innovation. The most common form of international technology transfer for multinational enterprises (MNEs) has been to invest technology in their subsidiaries abroad, because then they can effectively control the information transferred.

Keywords: intellectual property rights; international technology transfer; multinational enterprises (MNEs); TRIPS Agreement



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