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Does the Patent Cooperation Treaty work? A global analysis of patent applications by non-residents

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We study drivers of international patent applications by non-residents and assess the importance of the PCT membership in their motivations. We construct bilateral measures of foreign patent applications for all countries active as both a source of patents and a destination of applications filed between 1970 and 2009. The data used originates from the EPO Patstat database. Applying a gravity model to explain the determinants of seeking patent protection in foreign markets, we find that there is a negative relationship between PCT membership and a country's attractiveness for foreign applicants. It is mainly the size of the market and a country's inventive capacity that attract foreign applicants to seek for patent protection in foreign countries.

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File URL: http://publications.jrc.ec.europa.eu/repository/handle/JRC79541
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Paper provided by Joint Research Centre (Seville site) in its series JRC Working Papers with number JRC79541.

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Length: 36 pages
Date of creation: Jun 2012
Date of revision: Nov 2012
Publication status: published
Handle: RePEc:ipt:iptwpa:jrc79541
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