Working Paper Revision
Cross-border Patenting, Globalization, and Development
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.
Keywords: cross-border patents; gravity; policy; globalization; development;
JEL Classification: F63; O14; O33; O34;
https://doi.org/10.20955/wp.2023.031
Access Documents
File(s):
File format is application/pdf
https://s3.amazonaws.com/real.stlouisfed.org/wp/2023/2023-031.pdf
Description: Full text
Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Working Papers
Publication Date: 2024-01
Number: 2023-031
Related Works
- Working Paper Revision: Cross-border Patenting, Globalization, and Development