PUBLISHED ICT Policy

Global Financial Investment Connectedness, ICT, and Intellectual Property Strategies: A Country-Level Empirical Analysis

Kim, Y., Yoo, S.
Sustainability (2024) Vol. 16 (8) : 3282
Impact Factor 3.9
Quartile Q2
Citations 1
DOI: 10.3390/su16083282

Abstract

This study investigated the direct and indirect impacts of financial investment connectedness and Information and Communication Technology (ICT) on countries' intellectual property (IP) strategies. By utilizing the panel logit model on longitudinal country-level data, we found that countries' positions in the global financial investment network significantly affect their IP strategies.

Research Overview

This study examines how countries’ positions in global financial networks and their ICT development levels influence their intellectual property protection strategies, using advanced econometric techniques on cross-country panel data.

Research Questions

  1. How does financial investment connectedness affect IP strategies?
  2. What role does ICT development play in IP policy choices?
  3. Are there indirect effects through ICT-finance interactions?

Theoretical Framework

Financial Investment Networks

  • Centrality: Position in global investment flows
  • Connectivity: Number and strength of investment ties
  • Network Effects: Spillovers and peer influence
  • Capital Access: Funding for innovation

ICT Development

  • Infrastructure: Network coverage and quality
  • Adoption: Usage rates and digital skills
  • Innovation: Technology creation and diffusion
  • Economic Impact: Productivity and growth

IP Strategy Choices

  • Protection Level: Strength of IP rights
  • Enforcement: Implementation effectiveness
  • Policy Mix: Patents, copyrights, trademarks
  • International Alignment: Treaty participation

Methodology

Data and Sample

  • Countries: Cross-national panel dataset
  • Time Period: Multi-year observations
  • Variables: Financial, ICT, IP indicators
  • Sources: World Bank, WIPO, ITU, OECD

Analytical Approach

  • Panel Logit Model: Binary IP strategy choices
  • Network Analysis: Financial connectedness measures
  • Mediation Analysis: ICT as mediator
  • Robustness Checks: Alternative specifications

Key Findings

1. Direct Effects of Financial Connectedness

Positive Impact on IP Protection

  • Countries with higher financial centrality adopt stronger IP protection
  • Investment network position predicts IP policy stringency
  • Effect robust across different network measures

Mechanisms

  • Access to international capital requires credible IP protection
  • Foreign investors demand legal certainty and enforcement
  • Network position creates pressure for policy convergence

2. ICT Development Effects

Independent Influence

  • Higher ICT development correlates with stronger IP protection
  • Digital economy requires robust IP frameworks
  • Technology diffusion enhances IP enforcement capability

Mediating Role

  • ICT partially mediates finance-IP relationship
  • Digital infrastructure enables IP system modernization
  • Technology adoption facilitates IP management

3. Interaction Effects

Financial-ICT Synergy

  • Combined effects exceed individual impacts
  • ICT amplifies financial network influences
  • Digital connectivity enhances investment-IP linkages

Differential Impacts by Development Level

  • Stronger effects in middle-income countries
  • Heterogeneous responses across regions
  • Path-dependent policy adoption patterns

Policy Implications

For Developing Countries

  • Strengthen financial market integration
  • Invest in ICT infrastructure
  • Align IP policies with international standards
  • Build enforcement capacity

For Developed Countries

  • Maintain leadership in financial networks
  • Continue ICT innovation
  • Support international IP cooperation
  • Balance protection with access

For International Organizations

  • Facilitate financial market integration
  • Support ICT development programs
  • Promote IP system harmonization
  • Provide technical assistance

Contributions

Theoretical

  • Network theory application to IP policy
  • ICT-finance-IP nexus conceptualization
  • Multi-level institutional analysis

Empirical

  • Novel network-based measures
  • Comprehensive cross-country evidence
  • Advanced econometric identification

Policy

  • Evidence-based strategy recommendations
  • Integration of multiple policy domains
  • Context-specific guidance

Limitations and Future Research

Current Limitations

  • Data availability constraints
  • Causality identification challenges
  • Measurement issues

Future Directions

  • Firm-level analysis
  • Technology-specific IP strategies
  • Dynamic network effects
  • Regional comparative studies

Publication Details

Journal: Sustainability
Impact Factor: 3.9 (Q2)
Citations: 1
DOI: 10.3390/su16083282
Open Access: Yes