We characterize the knowledge production process whereby the inventive capabilities of the firm generate innovation output in highly inventive multinational enterprises (MNEs). We explore the sensitivity of this relationship to the strength of intellectual property rights (IPR) protection across the MNEs R&D subsidiaries. We argue that MNE innovative performance will be enhanced when the firm’s R&D activities are based in locations where IPR protection is stronger. Moreover, when considering the internal geography of the MNEs R&D activities, innovation performance depends on the distance between the home- and host-country IPR regime. Thus, innovation performance is worse, as the difference between home and host IPR regimes increases. Finally, we explore asymmetries in this relationship, in particular that the deterioration is more marked when MNEs locate their R&D activities in host economies with IPR protection significantly less strict than in their home country. We test these ideas using a unique new dataset about the most innovative MNEs in the world, an unbalanced panel of around 900 MNEs observed for the period 2004 to 2013 and find strong support for all our hypotheses.

我们描述了知识生产过程，在此过程中，公司的创新能力在高度创新的跨国企业 (MNEs) 中产生创新产出。我们探讨了这种关系对跨国公司研发子公司知识产权 (IPR) 保护力度的敏感性。我们认为，当公司的研发活动位于知识产权保护更强的地区时，跨国公司的创新绩效将得到提高。此外，在考虑跨国公司研发活动的内部地理时，创新绩效取决于母国和东道国知识产权制度之间的距离。因此，随着本国和东道国知识产权制度之间的差异增加，创新表现更差。最后，我们探索这种关系中的不对称性，尤其是当跨国公司将其研发活动设在知识产权保护远不及本国严格的东道国时，这种恶化更为明显。我们使用一个关于世界上最具创新性的跨国公司的独特新数据集来测试这些想法，这是一个由 2004 年至 2013 年期间观察到的大约 900 家跨国公司的不平衡面板，并发现我们所有假设的有力支持。