The Impact of Intellectual Property Protection and FDI on Firms′Market Performance with Bertrand Competition
Fang Hai-yan
Gu Xiao-yan
Abstract：Supposing that there are two firms in a duopoly market, one from developed countries and the other from developing countries.A two-stage game model with Bertrand Competition is constructed.The model assumes that the products have not only horizontal differences but also vertical differences.The firm in developed countries manufactures with R&D investment.The relationship between intellectual property protection, FDI ( foreign direct investment) and the firm market performance in developing countries is studied, while the foreign direct investment as the way of technology spillover is viewed.Under the Ber-trand Competition framework, the result shows that when the R&D investment of developed countries has a spillover, the firm market performance is related to the degree of product differentiation, the degree of cost advantage and of IPR( intellectual property rights) protection in developing countries.The market perform-ance of the firms in developing countries is always high when those in developed countries have FDI.
Keywords：product R&DBertrand competitionintellectual property rights ( IPR) protectionforeign direct investment ( FDI)
Publication Date：2015-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：6( 16-21 )