The protection of Intellectual Property Rights (IPRs) has not been harmonized across jurisdictions. There is a need to investigate the influence of IPR protection on Foreign Direct Investment (FDI) for different host jurisdictions. The link between the strength of a state’s IPRs regime and its degree of growth is theoretically unclear. The current analysis shows that IPRs protection is an important variable in attracting FDI. The indices zekipr1a/ zekipr3/zekipr4/zekipr5 in a linear modeling investigation give a positive result regarding the impact of IPRs upon FDI inflows which means that our indices (zekipr1a/ zekipr3/zekipr4/zekipr5/zekipr6 produced by different ways of the quantitative expression of IPRs law) are useful instruments for economic and econometric analysis.

The spreading recognition of the importance of competition has been supplemented by a persistent process of globalization and a clear raise in the elimination of obstacles to the flows of trade and global investment (Fiebig, 2000). The protection of Intellectual Property Rights (IPRs) has not been harmonized across jurisdictions, in spite of the Agreement on Trade-Related Intellectual Property Rights (TRIPS), representing one of the stakes of the WTO agenda emerged from the Uruguay Round, puts in a set of least amount of standards for IPR protection in each of the areas universally related to IPRs including patents, copyrights, trademarks, and trade secrets. Moreover, protection of IPRs is vital in the international competition for Foreign Direct Investment (FDI). Theory and practice point toward a tentative relationship between IPR protection and the distribution of FDI across jurisdictions. FDI is relocating productive capability from the source state to the host state. There is a need to investigate the influence of IPR protection on FDI for different host jurisdictions. The link between the strength of a state’s IPRs’ regime and its degree of growth is theoretically unclear. What is the impact of IPRs’ protection on FDI, labor, industry value-added and Gross Domestic Product (GDP) growth? The objective of this paper is to investigate and give an answer regarding the impact of IPR on FDI inflows, labor, industry value-added and GDP growth by employing the Zekipr (Zekos, 2013 and 2016) indexes in order to show the role of a good and accurate index in examining the necessity of IPR in the development of an economy. The quantitative illustration of law expressed by the newly prepared indexes is utilized in order to explain the economic impact and reflection of the implementation of law. The uniqueness of the current analysis is the utilization of new indices covering not only the black letter law concerning IPRs but also the ‘implementation-environment’ of the law expressed in various ways and endorsed by the indices and in turn the utility of the IPRs and competition in FDI inflows, GDP growth, industry valued-added and labor is investigated. The econometric models used in our empirical analysis will prove the economic theory concerning the positive or negative role and interrelation of IPRs and competition in influencing FDI inflows/outflows contributing to GDP growth and industry value-added.

Knowledge Management Journal, Intellectual Property Rights (IPRs), Foreign Direct Investment (FDI), Trade-Related Intellectual Property Rights (TRIPS), Gross Domestic Product (GDP), The Role of Competition, IPRs, Labor, FDI Inflows/Outflows, GDP Growth, Industry Value-Added.