This paper investigates the role of patent protection in the global investment decisions of multinational firms. Using … comprehensive firm-level panel data of German multinationals, we investigate how changes in a host country’s patent protection … influence the extensive and intensive margin of foreign direct investment (FDI) decisions. We isolate the effect of patent …

parents from 36 countries globally and their patent holdings in 36 European countries, we provide insight into the … of royalties, R&D incentives, and transfer pricing rules help to explain the patent-location choices of multinationals. …