I show that mature patent-practicing firms respond to windfall profits derived from exogenously extended patent protection time by engaging in external patent acquisitions that diversify their patent portfolios into new technologies. By exploiting the random timing of patent term expiry dates...

National and global collaboration in research and development (R&D) is becoming increasingly important in creating the knowledge that makes research and business more competitive. Multinational enterprises have increased their research and development (R&D) investment in different countries....

This paper explores offshoring of firms’ research and development functions. Our analysis employs a previously untapped and unique Eurostat International Sourcing Survey. The results are easy to summarize. First, the magnitude of R&D offshoring is small. Second, a large majority of R&D is...