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Cross-border Patenting, Globalization, and Development

Author

Listed:
  • Jesse LaBelle

    (Northwestern University)

  • Inmaculada Martinez-Zarzoso

    (Univerity of Göttingen & Universitat Jaume I)

  • Ana Maria Santacreu

    (Federal Reserve Bank of St. Louis)

  • Yoto Yotov

    (Drexel University)

Abstract

We build a stylized model that captures the relationships between cross-border patenting, globalization, and development. A byproduct of our theory is a gravity equation for cross-border patents. To test the model’s predictions, we compile a new comprehensive dataset that tracks patents within and between countries and industries, for 1980-2019. The econometric analysis reveals a strong, positive impact of policy and globalization on cross-border patent flows, especially from rich (North) to poor (South) countries. A counterfactual welfare analysis suggests that the increase in patent flows from North to South has benefited both regions, with South gaining more than North post-2000, thus lowering real income inequality in the world.

Suggested Citation

  • Jesse LaBelle & Inmaculada Martinez-Zarzoso & Ana Maria Santacreu & Yoto Yotov, 2023. "Cross-border Patenting, Globalization, and Development," School of Economics Working Paper Series 2023-7, LeBow College of Business, Drexel University.
    • Handle: RePEc:ris:drxlwp:2023_007
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    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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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