Globalization of innovation production: A patent-based industry analysis

Using patent-based indicators, this paper aims to explain the extent to which the production of innovation is globalized. First, it provides evidence-over time, across countries and across industrial sectors-on the patterns in international technological collaboration and in cross-border ownership of innovation. Second, a fractional logit model is estimated for a unique panel dataset covering patent information for 21 industries in 29 countries in the period 1980-2005. The results show that countries tend to be more globalized in industrial sectors in which they are less technologically specialized. It suggests that globalization of innovation is a means of acquiring competences abroad that are lacking at home, rather than a way to exploit home technological strengths. The empirical findings also indicate that the intensity of globalization of innovation is higher in multidisciplinary country-industry pairs and in those which compete internationally in trade.