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The German Market for Patents during the “Second Industrialization,” 1884–1913: A Gravity Approach

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  • Burhop, Carsten
  • Wolf, Nikolaus

Abstract

Using newly collected patent assignment data for late nineteenth- and early twentieth-century Germany and a standard econometric approach from the international trade literature—the gravity model—we demonstrate the existence of border effects on a historical technology market. We show that the geographic distance between assignor and assignee negatively affected the probability of patent assignments, as well as the fact that a state or international border separated the two contracting parties. Surprisingly, we show that the effect of a state border within Germany was nearly as large as the effect of an international border.

Suggested Citation

  • Burhop, Carsten & Wolf, Nikolaus, 2013. "The German Market for Patents during the “Second Industrialization,” 1884–1913: A Gravity Approach," Business History Review, Cambridge University Press, vol. 87(1), pages 69-93, April.
    • Handle: RePEc:cup:buhirw:v:87:y:2013:i:01:p:69-93_00
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    Cited by:

    1. Stephen D Billington & Alan J Hanna, 2021. "That’s classified! Inventing a new patent taxonomy [Text matching to measure patent similarity]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 678-705.
    2. Alexander Donges & Felix Selgert, 2019. "Technology transfer via foreign patents in Germany, 1843–77," Economic History Review, Economic History Society, vol. 72(1), pages 182-208, February.
    3. Kyriakos Drivas & Claire Economidou, 2015. "Is geographic nearness important for trading ideas? Evidence from the US," The Journal of Technology Transfer, Springer, vol. 40(4), pages 629-662, August.
    4. Naudé, Wim & Nagler, Paula, 2017. "Technological Innovation and Inclusive Growth in Germany," IZA Discussion Papers 11194, Institute of Labor Economics (IZA).
    5. Marco, Antonio De & Scellato, Giuseppe & Ughetto, Elisa & Caviggioli, Federico, 2017. "Global markets for technology: Evidence from patent transactions," Research Policy, Elsevier, vol. 46(9), pages 1644-1654.
    6. Wu, Xiaokang & Yang, Jijun, 2023. "High-speed railway and patent trade in China," Economic Modelling, Elsevier, vol. 123(C).

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