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The impact of patent protection on R&D. Evidence using export markets

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Listed:
  • Joel Blit

    (Department of Economics, University of Waterloo)

  • Mauricio Zelaya

    (NERA Economic Consulting)

Abstract

We examine whether stronger patent protection promotes private sector R&D, using changes in the patent rights regime of export destination countries as a quasi-exogenous source of variation. Constructing an export-weighted index of trade partner patent rights by country-industry-year, we find that R&D responds strongly to trade partner patent rights, and this after including country-industry, country-year, and industry-year fixed effects. This relationship is present in industries where patents are an effective way to protect innovation, but not in patent insensitive industries. Our results suggest a causal link between patent rights and firm R&D investments and support the inclusion of patent rights provisions in trade agreements.

Suggested Citation

  • Joel Blit & Mauricio Zelaya, "undated". "The impact of patent protection on R&D. Evidence using export markets," Working Papers 17010, University of Waterloo, Department of Economics.
    • Handle: RePEc:wat:wpaper:17010
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • 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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