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Cross-Border Patenting, Globalization, and Development

Author

Listed:
  • Jesse LaBelle
  • Inmaculada Martinez-Zarzoso
  • Ana Maria Santacreu
  • Yoto V. Yotov

Abstract

We build a stylized model that captures the relationships between cross-border patenting, globalization, and development. Our theory delivers a gravity equation for cross-border patents. To test the model’s predictions, we compile a new dataset that tracks patents within and between countries and industries, for 1980-2019. The econometric analysis reveals a strong, positive impact of policy and globalization on cross-border patent flows, especially from North to South. A counterfactual welfare analysis suggests that the increase in patent flows from North to South has benefited both regions, with South gaining more than North post-2000, thus lowering real income inequality in the world.

Suggested Citation

  • Jesse LaBelle & Inmaculada Martinez-Zarzoso & Ana Maria Santacreu & Yoto V. Yotov, 2023. "Cross-Border Patenting, Globalization, and Development," CESifo Working Paper Series 10850, CESifo.
    • Handle: RePEc:ces:ceswps:_10850
    as

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    References listed on IDEAS

    as
    1. Lee Branstetter & Ray Fisman & C. Fritz Foley & Kamal Saggi, 2023. "Does intellectual property rights reform spur industrial development?," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 13, pages 307-316, World Scientific Publishing Co. Pte. Ltd..
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    3. Kwan, Yum K. & Lai, Edwin L. -C., 2003. "Intellectual property rights protection and endogenous economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 853-873, March.
    4. Michael Pfaffermayr, 2019. "Gravity models, PPML estimation and the bias of the robust standard errors," Applied Economics Letters, Taylor & Francis Journals, vol. 26(18), pages 1467-1471, October.
    5. Lee Branstetter & Raymond Fisman & C. Fritz Foley & Kamal Saggi, 2007. "Intellectual Property Rights, Imitation, and Foreign Direct Investment: Theory and Evidence," NBER Working Papers 13033, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    cross-border patents; gravity; policy; globalization; development;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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