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Political, economic and research disintegration: The impact of geopolitical uncertainty on cross-border R&D collaborations and innovation

Author

Listed:
  • Enrico Vanino

    (School of Economics, University of Sheffield, Sheffield S1 4DT, UK)

  • Mustapha Douch

    (University of Edinburgh, Business School, UK)

  • Ismail Cakmak

    (Ordu University, Dept. of Management and Organization, Turkey)

Abstract

Uncertainty regarding the policy environment could be particularly detrimental for innovation, as it requires high-risk investment, and long-term commitments with scientists and research partners. This paper focuses on the effects of geopolitical uncertainty on cross-border R&D collaborations and patenting activity, exploiting the UK exit from the EU as a quasi-natural experiment in a Difference-in-Difference (DiD) analysis. Our results reveal a significant disruption in cross-border research collaborations of UK organisations after the Brexit referendum, as EU based inventors were replaced by UK ones. This has resulted in a shift in the field of technologies patented, and in a decrease in inventions patented overseas. Overall, the disruption has negatively affected the innovations of UK based organisations, reducing both the number and quality of patents.

Suggested Citation

  • Enrico Vanino & Mustapha Douch & Ismail Cakmak, 2025. "Political, economic and research disintegration: The impact of geopolitical uncertainty on cross-border R&D collaborations and innovation," Working Papers 2025003, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2025003
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    File URL: https://www.sheffield.ac.uk/economics/research/serps
    File Function: First version, March 2025
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    More about this item

    Keywords

    Economic policy uncertainty; Brexit; Innovation; Patents; International research collaborations;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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