The Review of Economics and Statistics Vol. 108 No. 1 2026
International Technology Licensing, Intellectual Property Rights, and Tax Havens
Abstract
This article investigates the determinants of international technology licensing using data for 50 countries during 1996–2012. A multicountry model of innovation yields a dynamic structural gravity equation for royalty payments as a function of fundamentals, including imperfect intellectual property protection and differences in corporate taxation. The gravity equation is estimated with nonlinear methods. My model’s fundamentals account for about 60% of the variation in royalty payments. A quantitative analysis sheds light on the impact of global taxation reforms on international technology licensing and innovation. The findings highlight the role of taxation in shaping cross-border technology flows and the consequences of profit-shifting.
- DOI
- 10.1162/rest_a_01382
- Volume
- 108
- Issue
- 1
- Pages
- 210-224
- Language
- en
- Sources
- openalex crossref