Globalization of Software Research: Does the Us Have an Advantage in Applications?

31 Pages Posted: 3 Mar 2009

See all articles by Ashish Arora

Ashish Arora

Duke University - Fuqua School of Business; National Bureau of Economics Research; Duke Innovation & Entrepreneurship Initiative

Matej Drev

Georgia Institute of Technology

Chris Forman

Cornell University - Dyson School of Applied Economics and Management; Georgia Institute of Technology - Scheller College of Business

Date Written: February 27, 2009

Abstract

Does the US have a comparative advantage in research on applications software? We classify software patents into applied and upstream software based on a unique classification algorithm. We offer empirical evidence that research on applied software is less likely to be conducted outside the US than that on upstream applications. We hypothesize that this comparative advantage is due to the presence of lead users of software within the US, and offer some evidence in support of this hypothesis. We also find evidence that the propensity to self-cite offshore research is higher for applied software than for upstream, suggesting that US firms may use internal knowledge transfers to mediate the needs of lead users.

Keywords: globalization, lead users, patents, comparative advantage, econometrics

JEL Classification: F23, L86, M19

Suggested Citation

Arora, Ashish and Drev, Matej and Forman, Chris, Globalization of Software Research: Does the Us Have an Advantage in Applications? (February 27, 2009). Atlanta Competitive Advantage Conference Paper. Available at SSRN: https://ssrn.com/abstract=1350624 or http://dx.doi.org/10.2139/ssrn.1350624

Ashish Arora

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

National Bureau of Economics Research

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

Matej Drev

Georgia Institute of Technology ( email )

Atlanta, GA 30332
United States

Chris Forman (Contact Author)

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

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