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On the spillovers between patents and innovation in Japan

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  • Jin Guo

Abstract

This article investigates the mean and variance spillovers between patent applications and total factor productivity (TFP) in Japan. First, we find a stationary cointegrating relationship between patent applications and TFP in the long run. This result suggests an increase in patent applications directly leads to an increase in innovation. Second, we also obtain evidence of significant bidirectional causality in mean and variance between patent applications and TFP. These finding indicates that there exists a bidirectional mean and volatility spillover effects between patents and innovations in the Japanese context. The results of our investigation can assist policymakers in taking decisions regarding the regulation of Japan’s patenting system. Copyright Springer Science+Business Media New York 2015

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  • Jin Guo, 2015. "On the spillovers between patents and innovation in Japan," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(3), pages 590-605, July.
    • Handle: RePEc:spr:jecfin:v:39:y:2015:i:3:p:590-605
    DOI: 10.1007/s12197-014-9284-4
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    Cited by:

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    2. Alina Okun & Randall Valentine, 2020. "Examining the Relationship between Earnings and Patent Filings among Pharmaceutical Companies in Asia," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 217-221.

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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