The Global Geography of Patenting
Abstract
We build a stylized model that captures the relationships between cross-border patenting, globalization, and development. Our theory delivers a gravity equation for cross-border patents. To test the model’s predictions, we compile a new 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 North to South. 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.
Previously circulated as “Cross-border Patenting, Globalization, and Development,” Federal Reserve Bank of St. Louis Working Paper 2023-031. The PDF linked above is that earlier version.
Code: Replication code and the INPACT-S construction code are available upon request. Please email me to ask.
Jesse LaBelle
Fourth-Year Economics PhD Candidate
Jesse LaBelle is a fourth-year PhD Candidate in the Northwestern University Economics Department.