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  • This paper empirically assesses the responsiveness of US off-shoring to intellectual property rights (IPR) reforms in 16 coun-tries.
  • We construct a measure of US offshoring at the industry level based on trade in intermediate goods using panel data that co-vers 23 industries and 16 countries for the period 1973-2006. For each industry, we differentiate between broad offshoring and intra-industry offshoring (also known as narrow offshoring) activities. We conduct a difference-in-difference analysis using the IPR reform years proposed in Branstetter et al. (2006, Quar-terly Journal of Economics).
  • We find that following IPR reform, neither broad offshoring nor intra-industry offshoring intensities change for the typical US in-dustry at conventional levels of significance.
  • However, when we distinguish between high-tech (patent-sensitive) and low-tech (patent-insensitive) industries, we find that high-tech industries substantially expand their intra-industry offshoring activities, whereas low-tech industries do not change their intra-industry offshoring in a statistically significant way.
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