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Discrimination against foreigners in the U.S. patent system

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  • Gaétan de Rassenfosse

    (Ecole Polytechnique Fédérale de Lausanne)

  • Reza Hosseini

    (Ecole Polytechnique Fédérale de Lausanne)

Abstract

Inventions of foreign origin are about ten percentage points less likely to be granted a U.S. patent than domestic inventions. An empirical analysis of 1.5 million U.S. patent applications identifies three systematic differences between foreign and domestic patent applications that partly explain this bias. They include differences in patent agents, the financial resources of the applicants, and the level of effort that applicants put into the prosecution process. We find no evidence of disparate treatment (‘intentional discrimination’) of foreigners. Instead, our evidence points to a disparate impact (‘unintentional discrimination’) of the U.S. patent system on foreign inventors. Our results suggest unequal access to the patent system for foreigners compared to locals (but also for small U.S. firms). Giving examiners the power of (truly) rejecting a patent application may be one solution to level the playing field between foreigners and locals, but also between large and small firms.

Suggested Citation

  • Gaétan de Rassenfosse & Reza Hosseini, 2020. "Discrimination against foreigners in the U.S. patent system," Journal of International Business Policy, Palgrave Macmillan, vol. 3(4), pages 349-366, December.
  • Handle: RePEc:pal:joibpo:v:3:y:2020:i:4:d:10.1057_s42214-020-00058-6
    DOI: 10.1057/s42214-020-00058-6
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    Cited by:

    1. Elise Petit & Bruno Van Pottelsberghe & Lluís Gimeno Fabra, 2021. "Are Patent Offices Substitutes ?," Working Papers TIMES² 2021-049, ULB -- Universite Libre de Bruxelles.
    2. Gaétan De Rassenfosse & Paul H. Jensen & T'Mir Julius & Alfons Palangkaraya & Elizabeth Webster, 2023. "Is the Patent System an Even Playing Field? The Effect of Patent Attorney Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 71(1), pages 124-142, March.
    3. Elise Petit & Bruno van Pottelsberghe de la Potterie & Lluis Gimeno-Fabra, 2022. "Global patent systems: Revisiting the national bias hypothesis," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 56-67, March.
    4. Matthias Niggli, 2023. "‘Moving On’—investigating inventors’ ethnic origins using supervised learning," Journal of Economic Geography, Oxford University Press, vol. 23(4), pages 921-947.
    5. Gaétan de Rassenfosse & Emilio Raiteri & Rudi Bekkers, 2023. "Discrimination in the Patent System: Evidence from Standard-Essential Patents," Journal of Law and Economics, University of Chicago Press, vol. 66(4), pages 739-763.
    6. Matthias Niggli, 2023. "‘Moving On’—investigating inventors’ ethnic origins using supervised learning," Review of Finance, European Finance Association, vol. 23(4), pages 921-947.
    7. Li Yao & He Ni, 2023. "Prediction of patent grant and interpreting the key determinants: an application of interpretable machine learning approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(9), pages 4933-4969, September.

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    More about this item

    Keywords

    foreign bias; discrimination; disparate impact; national treatment principle; patent system;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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