Research Policy 2020

Counterfeiting in digital technologies: An empirical analysis of the economic performance and innovative activities of affected companies

Vincenzo Butticè¹; Federico Caviggioli²; Chiara Franzoni¹; Giuseppe Scellato^3,2; Piotr Stryszowski⁴; Nikolaus Thumm⁵

¹ Politecnico di Milano · ² Polytechnic University of Turin · ³ Collegio Carlo Alberto · ⁴ Organisation de Coopération et de Développement Economiques · ⁵ Joint Research Center

Abstract

This study analyses empirically the effects of counterfeiting on the economic and innovation performance of firms, exploiting a novel and unique dataset that integrates information on custom seizures worldwide during years 2011–2013 with financial accounting data, patent and trademark data for a sample of digital technology companies. We apply diff-in-diff models using a large control sample of non-affected firms. Results provide robust evidence that counterfeiting is associated to a negative impact on operative margins of affected companies, relative to the control sample. The analysis does not find conclusive evidence on the effects of counterfeiting on the innovation activities of affected companies. We find no evidence in support of the hypothesis that counterfeiting could also exert an indirect positive effect on the sales of genuine goods.

DOI

10.1016/j.respol.2020.103959

Sources

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APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓