Composition of foreign direct investment and protection of intellectual property rights in transition economies

摘要: Using a unique firm-level dataset this study shows that foreign investors in transition economies are characterized by low, rather than high, R&D intensity. It also finds with higher spending more likely to engage non-manufacturing projects local production. The empirical analysis links these results weak protection of intellectual property rights (IPRs). deters investment, especially investment those technology-intensive sectors rely heavily on IPRs. Weak IPR encourages undertake concludes affects the composition FDI inflows.