The Relationship Between Intellectual Property Rights and Foreign Direct Investment

Since the mid-1980s, policymakers in developed and developing countries have directed increasing attention to intellectual property rights (IPRs). The globalization of economic activities and the expansion of international transactions involving knowledge-intensive products have generated much friction around this topic. This friction often reflects differences in national approaches toward the protection of IPRs. In turn, the various national approaches have fostered a movement toward higher standards of protection at a worldwide level. Many developing countries, for example, have begun to reform their IPR regimes in response to new international commitments, domestic economic reforms, and external pressures.