IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v64y2021ics0160791x20312598.html
   My bibliography  Save this article

Innovation diffusion enabler or barrier: An investigation of international patenting based on temporal exponential random graph models

Author

Listed:
  • Ma, Ding
  • Yu, Qian
  • Li, Jing
  • Ge, Mengni

Abstract

The past two decades have witnessed a rapid growth of foreign patenting, accounting for an average of 15.4% of all patents filed under the Patent Cooperation Treaty (PCT) in the critical technology domains. This study explores two hypotheses in explaining this worldwide phenomenon in the networked relationships, that is, market covering and competitive threat. International patenting networks (IPN) over the period 1999 to 2018 are established using the dataset of cross-border ownership patents from 89 countries released from OECD's Directorate for Science, Technology and Industry. The temporal exponential random graph models (TERGMs) are formulated to test the two hypotheses, proxied by import network and competitive import network, conditioning on country-specific, network self-organizing, and exogenous network characteristics. Results of this study lend support to market covering hypothesis, that is, higher exports lead to greater propensity to patent abroad. This finding identifies international patenting as an enabler of innovation diffusion rather than a barrier. Furthermore, results of controlling variables indicate technological distance exerts an inhibiting effect, whereas charges for intellectual property rights has a promoting influence on IPN evolution, thus shedding light on the catching-up of developed economies.

Suggested Citation

  • Ma, Ding & Yu, Qian & Li, Jing & Ge, Mengni, 2021. "Innovation diffusion enabler or barrier: An investigation of international patenting based on temporal exponential random graph models," Technology in Society, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:teinso:v:64:y:2021:i:c:s0160791x20312598
    DOI: 10.1016/j.techsoc.2020.101456
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X20312598
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2020.101456?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yang, Chih-Hai & Kuo, Nai-Fong, 2008. "Trade-related influences, foreign intellectual property rights and outbound international patenting," Research Policy, Elsevier, vol. 37(3), pages 446-459, April.
    2. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    3. Kelvin W. Willoughby, 2020. "Endogenous innovation, outward-bound international patenting and national economic development," The Journal of Technology Transfer, Springer, vol. 45(3), pages 844-869, June.
    4. Krammer, Sorin M.S., 2014. "Assessing the relative importance of multiple channels for embodied and disembodied technological spillovers," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 272-286.
    5. Smith, Pamela J., 1999. "Are weak patent rights a barrier to U.S. exports?," Journal of International Economics, Elsevier, vol. 48(1), pages 151-177, June.
    6. Bosworth, Derek L., 1984. "Foreign patent flows to and from the United Kingdom," Research Policy, Elsevier, vol. 13(2), pages 115-124, April.
    7. Maskus, Keith E. & Penubarti, Mohan, 1995. "How trade-related are intellectual property rights?," Journal of International Economics, Elsevier, vol. 39(3-4), pages 227-248, November.
    8. Montobbio, Fabio & Sterzi, Valerio, 2013. "The Globalization of Technology in Emerging Markets: A Gravity Model on the Determinants of International Patent Collaborations," World Development, Elsevier, vol. 44(C), pages 281-299.
    9. Hurtado-Torres, Nuria E. & Aragón-Correa, J. Alberto & Ortiz-de-Mandojana, Natalia, 2018. "How does R&D internationalization in multinational firms affect their innovative performance? The moderating role of international collaboration in the energy industry," International Business Review, Elsevier, vol. 27(3), pages 514-527.
    10. Janusz A. Ordover, 1991. "A Patent System for Both Diffusion and Exclusion," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 43-60, Winter.
    11. Chege, Samwel Macharia & Wang, Daoping & Suntu, Shaldon Leparan & Bishoge, Obadia Kyetuza, 2019. "Influence of technology transfer on performance and sustainability of standard gauge railway in developing countries," Technology in Society, Elsevier, vol. 56(C), pages 79-92.
    12. 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.
    13. Grupp, Hariolf & Schmoch, Ulrich, 1999. "Patent statistics in the age of globalisation: new legal procedures, new analytical methods, new economic interpretation," Research Policy, Elsevier, vol. 28(4), pages 377-396, April.
    14. Hunter, David R. & Handcock, Mark S. & Butts, Carter T. & Goodreau, Steven M. & Morris, Martina, 2008. "ergm: A Package to Fit, Simulate and Diagnose Exponential-Family Models for Networks," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 24(i03).
    15. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May.
    16. Hall, Bronwyn H & Ziedonis, Rosemarie Ham, 2001. "The Patent Paradox Revisited: An Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 101-128, Spring.
    17. Hu, Albert Guangzhou, 2010. "Propensity to patent, competition and China's foreign patenting surge," Research Policy, Elsevier, vol. 39(7), pages 985-993, September.
    18. Sun, Yifei, 2003. "Determinants of foreign patents in China," World Patent Information, Elsevier, vol. 25(1), pages 27-37, March.
    19. Orazbayev, Sultan, 2017. "International knowledge flows and the administrative barriers to mobility," Research Policy, Elsevier, vol. 46(9), pages 1655-1665.
    20. Chen, Zhiyuan & Zhang, Jie, 2019. "Types of patents and driving forces behind the patent growth in China," Economic Modelling, Elsevier, vol. 80(C), pages 294-302.
    21. 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.
    22. Yoo, Dasun & Reimann, Felix, 2017. "Internationalization of Developing Country Firms into Developed Countries: The Role of Host Country Knowledge-Based Assets and IPR Protection in FDI Location Choice," Journal of International Management, Elsevier, vol. 23(3), pages 242-254.
    23. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    24. Giovanni Dosi & Keith Pavitt & Luc Soete, 1990. "The Economics of Technical Change and International Trade," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1990, March.
    25. Caviggioli, Federico, 2011. "Foreign applications at the Japan Patent Office - An empirical analysis of selected growth factors," World Patent Information, Elsevier, vol. 33(2), pages 157-167, June.
    26. Engel, Janina & Pagano, Andrea & Scherer, Matthias, 2019. "Reconstructing the topology of financial networks from degree distributions and reciprocity," Journal of Multivariate Analysis, Elsevier, vol. 172(C), pages 210-222.
    27. Dang, Jianwei & Kang, Byeongwoo & Ding, Ke, 2019. "International protection of standard essential patents," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 75-86.
    28. Cai, Helen (Huifen) & Sarpong, David & Tang, Xiaoyun & Zhao, Guiqin, 2020. "Foreign patents surge and technology spillovers in China (1985–2009): Evidence from the patent and trade markets," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    29. Fragiskos Archontakis & Nikos Varsakelis, 2011. "US patents abroad: Does gravity matter?," The Journal of Technology Transfer, Springer, vol. 36(4), pages 404-416, August.
    30. Moussa, Bachar & Varsakelis, Nikos C., 2017. "International patenting: An application of network analysis," The Journal of Economic Asymmetries, Elsevier, vol. 15(C), pages 48-55.
    31. Blind, Knut & Edler, Jakob & Frietsch, Rainer & Schmoch, Ulrich, 2006. "Motives to patent: Empirical evidence from Germany," Research Policy, Elsevier, vol. 35(5), pages 655-672, June.
    32. Gazni, Ali, 2020. "The growing number of patent citations to scientific papers: Changes in the world, nations, and fields," Technology in Society, Elsevier, vol. 62(C).
    33. Nabeshima, Kaoru & Kang, Byeongwoo & Kashcheeva, Mila, 2016. "Descriptive analysis of the knowledge network formation in East Asia," Technology in Society, Elsevier, vol. 47(C), pages 66-100.
    34. Keupp, Marcus Matthias & Friesike, Sascha & von Zedtwitz, Maximilian, 2012. "How do foreign firms patent in emerging economies with weak appropriability regimes? Archetypes and motives," Research Policy, Elsevier, vol. 41(8), pages 1422-1439.
    35. Papageorgiadis, Nikolaos & Cross, Adam R. & Alexiou, Constantinos, 2013. "The impact of the institution of patent protection and enforcement on entry mode strategy: A panel data investigation of U.S. firms," International Business Review, Elsevier, vol. 22(1), pages 278-292.
    36. Catherine Y. Co, 2004. "Do Patent Rights Regimes Matter?," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 359-373, August.
    37. He, Xi-jun & Dong, Yan-bo & Wu, Yu-ying & Jiang, Guo-rui & Zheng, Yao, 2019. "Factors affecting evolution of the interprovincial technology patent trade networks in China based on exponential random graph models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 514(C), pages 443-457.
    38. Fabio Montobbio & Valerio Sterzi, 2013. "The globalization of technology in emerging markets: a gravity model on the determinants of international technological collaborations," Post-Print hal-00779894, HAL.
    39. Archontakis, Fragiskos & Varsakelis, Nikos C., 2017. "Patenting abroad: Evidence from OECD countries," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 62-69.
    40. Righetto, Lorenzo & Spelta, Alessandro & Rabosio, Emanuele & Pammolli, Fabio, 2019. "Long-term correlations in short, non-stationary time series: An application to international R&D collaborations," Journal of Informetrics, Elsevier, vol. 13(2), pages 583-592.
    41. Yang, Chih-Hai & Matsuura, Toshiyuki & Ito, Tadashi, 2019. "R&D and patenting activities of foreign firms in China: The case of Japan," Japan and the World Economy, Elsevier, vol. 49(C), pages 151-160.
    42. Pilar Beneito & María Engracia Rochina-Barrachina & Amparo Sanchis, 2018. "International patenting decisions: empirical evidence with Spanish firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 579-599, August.
    43. Diana Heger & Alexandra K. Zaby, 2018. "Patent breadth as effective barrier to market entry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(2), pages 174-188, February.
    44. Sun, Yutao & Grimes, Seamus, 2017. "The actors and relations in evolving networks: The determinants of inter-regional technology transaction in China," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 125-136.
    45. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-570, August.
    46. Ivus, Olena, 2010. "Do stronger patent rights raise high-tech exports to the developing world?," Journal of International Economics, Elsevier, vol. 81(1), pages 38-47, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Keke Sun & Xia Cao & Zeyu Xing, 2021. "Can the Diffusion Modes of Green Technology Affect the Enterprise’s Technology Diffusion Network towards Sustainable Development of Hospitality and Tourism Industry in China?," Sustainability, MDPI, vol. 13(16), pages 1-18, August.
    2. Tang, Chenghui & Qiu, Peng & Dou, Jianmin, 2022. "The impact of borders and distance on knowledge spillovers — Evidence from cross-regional scientific and technological collaboration," Technology in Society, Elsevier, vol. 70(C).
    3. Li, Songran & Shao, Qinglong, 2021. "Exploring the determinants of renewable energy innovation considering the institutional factors: A negative binomial analysis," Technology in Society, Elsevier, vol. 67(C).
    4. Willoughby, Kelvin W. & Mullina, Nadezhda, 2021. "Reverse innovation, international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation," Technology in Society, Elsevier, vol. 67(C).
    5. Ebersberger, Bernd & Feit, Margarita & Mengis, Helen, 2023. "International knowledge interactions and catch-up. Evidence from European patent data for Chinese latecomer firms," International Business Review, Elsevier, vol. 32(2).
    6. Jiang, Li & Bai, Yu, 2022. "Strategic or substantive innovation? -The impact of institutional investors' site visits on green innovation evidence from China," Technology in Society, Elsevier, vol. 68(C).
    7. de Almeida, Liliane & Augusto de Jesus Pacheco, Diego & Caten, Carla Schwengber ten & Jung, Carlos Fernando, 2021. "A methodology for identifying results and impacts in technological innovation projects," Technology in Society, Elsevier, vol. 66(C).
    8. Guo, Yaoqi & Zhao, Boya & Zhang, Hongwei, 2023. "The impact of the Belt and Road Initiative on the natural gas trade: A network structure dependence perspective," Energy, Elsevier, vol. 263(PD).
    9. Song, Haoyang & Hou, Jianhua & Zhang, Yang, 2022. "Catalytic capacity of technological innovation: Multidimensional definition and measurement from the perspective of knowledge spillover," Technology in Society, Elsevier, vol. 68(C).
    10. Peng, Wei & Xiong, Langyu, 2022. "Managing financing costs and fostering green transition: The role of green financial policy in China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 820-836.
    11. Yin, Yue & Yan, Ming & Zhan, Qiushi, 2022. "Crossing the valley of death: Network structure, government subsidies and innovation diffusion of industrial clusters," Technology in Society, Elsevier, vol. 71(C).
    12. Haoyang Song & Jianhua Hou & Yang Zhang, 2022. "Patent protection: does it promote or inhibit the patented technological knowledge diffusion?," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(5), pages 2351-2379, May.
    13. Losacker, Sebastian, 2022. "‘License to green’: Regional patent licensing networks and green technology diffusion in China," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    14. Yuying Gao & Shanyue Jin, 2022. "Corporate Nature, Financial Technology, and Corporate Innovation in China," Sustainability, MDPI, vol. 14(12), pages 1-22, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cai, Helen (Huifen) & Sarpong, David & Tang, Xiaoyun & Zhao, Guiqin, 2020. "Foreign patents surge and technology spillovers in China (1985–2009): Evidence from the patent and trade markets," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    2. Archontakis, Fragiskos & Varsakelis, Nikos C., 2017. "Patenting abroad: Evidence from OECD countries," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 62-69.
    3. Gao, Xue & Zhang, Yi, 2022. "What is behind the globalization of technology? Exploring the interplay of multi-level drivers of international patent extension in the solar photovoltaic industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 163(C).
    4. Wei Yang & Xiang Yu & Ben Zhang & Ziyang Huang, 2021. "Mapping the landscape of international technology diffusion (1994–2017): network analysis of transnational patents," The Journal of Technology Transfer, Springer, vol. 46(1), pages 138-171, February.
    5. Willoughby, Kelvin W. & Mullina, Nadezhda, 2021. "Reverse innovation, international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation," Technology in Society, Elsevier, vol. 67(C).
    6. Huang, Can & Jacob, Jojo, 2014. "Determinants of quadic patenting: Market access, imitative threat, competition and strength of intellectual property rights," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 4-16.
    7. Bachar Moussa & Nikos C. Varsakelis, 2022. "Causality Between International Trade and International Patenting: A Combination of Network Analysis and Granger Causality," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 50(1), pages 9-26, June.
    8. Kelvin W. Willoughby, 2020. "Endogenous innovation, outward-bound international patenting and national economic development," The Journal of Technology Transfer, Springer, vol. 45(3), pages 844-869, June.
    9. Mercedes Delgado & Margaret Kyle & Anita M. McGahan, 2013. "Intellectual Property Protection and the Geography of Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 733-762, September.
    10. Aparna Sharma & Ruchi Sharma & Sidheswar Panda, 2022. "The role of technological capabilities and gap in the cross-country patenting: an empirical investigation," International Economics and Economic Policy, Springer, vol. 19(1), pages 1-27, February.
    11. Pilar Beneito & Mari´a E. Rochina-Barrachina & Amparo Sanchis, 2017. "The determinants of international patenting decisions of Spanish firms," Working Papers 1708, Department of Applied Economics II, Universidad de Valencia.
    12. Olena Ivus & Walter G Park & Kamal Saggi, 2023. "Patent protection and the composition of multinational activity: Evidence from US multinational firms," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 14, pages 317-345, World Scientific Publishing Co. Pte. Ltd..
    13. Pilar Beneito & María Engracia Rochina-Barrachina & Amparo Sanchis, 2018. "International patenting decisions: empirical evidence with Spanish firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 579-599, August.
    14. Pamela J. Smith & Sebastian J. Anti, 2022. "How does TRIPs compliance affect the economic growth of developing countries? Application of the Synthetic Control method," The World Economy, Wiley Blackwell, vol. 45(12), pages 3873-3906, December.
    15. Andrew Eckert & Corinne Langinier & Long Zhao, 2022. "Determinants of locational patenting behavior of Canadian firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(4), pages 268-291, May.
    16. Dong, Baomin & Guo, Yibei & Hu, Xiaotian, 2022. "Intellectual property rights protection and export product quality: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 143-158.
    17. Di Fan & Long Zhao, 2022. "Old Wine in New Bottles: Patenting Propensity," Journal of Industry, Competition and Trade, Springer, vol. 22(2), pages 207-224, June.
    18. Lin, Jenny X. & Lincoln, William F., 2017. "Pirate's treasure," Journal of International Economics, Elsevier, vol. 109(C), pages 235-245.
    19. Banri Ito & Katsunori Shirai, 2023. "Patent law harmonization and international trade," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 289-306, February.
    20. Harhoff, Dietmar & Hoisl, Karin & Reichl, Bettina & van Pottelsberghe de la Potterie, Bruno, 2009. "Patent validation at the country level--The role of fees and translation costs," Research Policy, Elsevier, vol. 38(9), pages 1423-1437, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:64:y:2021:i:c:s0160791x20312598. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.