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Cross-border Patenting, Globalization, and Development

Author

Listed:
  • Jesse LaBelle

    (Northwestern University)

  • Inmaculada Martinez-Zarzoso

    (Universitat Jaume I)

  • Ana Maria Santacreu

    (FRB of St. Louis)

  • Yoto Yotov

    (School of Economics, Drexel University)

Abstract

We build a model of cross-border patent filing, technology diffusion, and development. Our theory delivers a ‘structural gravity’ equation for cross-border patent flows that disentangles the effects of technology diffusion from policy-driven changes in IPR protection. To test the model’s predictions, we compile the International Patent and Citations across Sectors (INPACT-S) database that tracks patents within and between countries and industries over time. The econometric analysis reveals that while policy efforts have effectively promoted cross-border patent flows, the surge in patents from developed (North) to developing (South) countries between 1995 and 2018 was primarily driven by increased technology diffusion. A numerical analysis shows these North-South flows benefited both regions but generated larger gains in the South, thus reducing global income inequality.

Suggested Citation

  • Jesse LaBelle & Inmaculada Martinez-Zarzoso & Ana Maria Santacreu & Yoto Yotov, 2025. "Cross-border Patenting, Globalization, and Development," Working Papers 202507, Center for Global Policy Analysis, LeBow College of Business, Drexel University.
    • Handle: RePEc:drx:wpaper:202507
    as

    Download full text from publisher

    File URL: https://www.lebow.drexel.edu/sites/default/files/2025-04/202507-cgpa-cross-border-patenting.pdf
    File Function: First version, 2025
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    More about this item

    Keywords

    Cross-border Patents; Gravity; Technology Diffusion; Development; Policy.;
    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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