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What drives the internationalisation of innovation? Evidence from European patent data

Author

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  • Bernhard Dachs
  • Andreas Pyka

Abstract

This paper analyses the current internationalisation of innovation activities and identifies the main drivers for the countries of the European Union (EU). We employ patent applications at the European Patent Office covering the period 2000-2005. Our results show that the internationalisation of innovation is mainly due to an intensified co-operation between EU member states, as well as stronger ties between Europe and the USA. Innovative activity of EU enterprises is hardly globalised in the sense of being equally distributed around the world. Multivariate analysis reveals that cross-border patents between two countries increase with absolute market size of the host country, with rising levels of research and development in the home and host country and with a stronger protection of intellectual property rights in the host country. Distance between home and host country is negatively related to the number of cross-border patents. A common language between two countries and joint membership in the EU are also factors that considerably spur overseas innovation activity.

Suggested Citation

  • Bernhard Dachs & Andreas Pyka, 2010. "What drives the internationalisation of innovation? Evidence from European patent data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 71-86.
  • Handle: RePEc:taf:ecinnt:v:19:y:2010:i:1:p:71-86
    DOI: 10.1080/10438590903016476
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    References listed on IDEAS

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    1. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Giuditta De Prato & Daniel Nepelski, 2012. "International technology transfer between China and the rest of the world," JRC Working Papers JRC79397, Joint Research Centre (Seville site), revised Nov 2012.
    2. Nepelski, Daniel & De Prato, Giuditta, 2011. "Internationalisation of ICT R&D in Asia vis a vis the world regions," MPRA Paper 39281, University Library of Munich, Germany.
    3. Giuditta Prato & Daniel Nepelski, 2014. "Global technological collaboration network: network analysis of international co-inventions," The Journal of Technology Transfer, Springer, vol. 39(3), pages 358-375, June.
    4. Heike Belitz, 2014. "Motive der Internationalisierung von Forschung und Entwicklung," DIW Roundup: Politik im Fokus 29, DIW Berlin, German Institute for Economic Research.
    5. Expertenkommission Forschung und Innovation (EFI), Berlin (ed.), 2013. "Gutachten zu Forschung, Innovation und technologischer Leistungsfähigkeit Deutschlands 2013," Research, Innovation and Technological Performance in Germany: Report, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin, volume 127, number 2013.
    6. repec:spr:jknowl:v:9:y:2018:i:2:d:10.1007_s13132-015-0347-3 is not listed on IDEAS
    7. Hall, Bronwyn H., 2011. "The internationalization of R&D," MERIT Working Papers 049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Giuditta De Prato & Daniel Nepelski, 2012. "Global R&D network. A network analysis of international R&D centres," JRC Working Papers JRC79478, Joint Research Centre (Seville site), revised Nov 2012.
    9. Eva Dettmann & Iciar Dominguez Lacasa & Jutta Guenther & Bjorn Jindra, 2013. "Determinants of foreign technological activity in German regions - a count model analysis of transnational patents (1996-2009)," HSE Working papers WP BRP 17/STI/2013, National Research University Higher School of Economics.
    10. Noailly, Joëlle & Ryfisch, David, 2015. "Multinational firms and the internationalization of green R&D: A review of the evidence and policy implications," Energy Policy, Elsevier, vol. 83(C), pages 218-228.
    11. Sandra Leitner & Bernhard Dachs & Robert Stehrer, 2012. "Determinants of R&D activities of multinational firms abroad," ERSA conference papers ersa12p196, European Regional Science Association.
    12. Athreye, Suma & Batsakis, Georgios & Singh, Satwinder, 2016. "Local, global, and internal knowledge sourcing: The trilemma of foreign-based R&D subsidiaries," Journal of Business Research, Elsevier, vol. 69(12), pages 5694-5702.
    13. Dettmann, Eva & Dominguez Lacasa, Iciar & Günther, Jutta & Jindra, Björn, 2013. "Determinants of Foreign Technological Activity in German Regions – A Count Model Analysis of Transnational Patents (1996-2009)," IWH Discussion Papers 12/2013, Halle Institute for Economic Research (IWH).
    14. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    15. repec:rsr:supplm:v:65:y:2017:i:9:p:17-30 is not listed on IDEAS
    16. Suma Athreye & Georgios Batsakis & Satwinder Singh, 2013. "Subsidiary Embeddedness is a Strategic Choice: Complementarity and the factors associated with different types of embeddedness," DRUID Working Papers 13-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    17. Tiwari, Rajnish & Herstatt, Cornelius, 2011. "Role of "Lead Market" factors in globalization of innovation: Emerging evidence from India & its implications," Working Papers 64, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    18. Commission of Experts for Research and Innovation (EFI), Berlin (ed.), 2013. "Research, innovation and technological performance in Germany - EFI Report 2013," Research, Innovation and Technological Performance in Germany: Report, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin, volume 127, number 2013e.
    19. Jérôme Danguy, 2014. "Who collaborates with whom: the role of technological distance in international innovation," iCite Working Papers 2014-010, ULB -- Universite Libre de Bruxelles.
    20. Eva Dettmann & Iciar Dominguez Lacasa & Jutta Guenther & Bjorn Jindra, 2014. "Determinants of Foreign Technological Activity in German Regions - A Count Model Analysis of Transnational Patents," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 8(1), pages 34-51.
    21. Davide Castellani & Giulio Giangaspero & Antonello Zanfei, 2013. "Heterogeneity and distance. Some propositions on how differences across regions, firms and functions affect the role of distance in FDI location decisions," Working Papers 1308, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2013.

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