International Patent Protection and Trade: Transaction-Level Evidence

28 Pages Posted: 14 Apr 2020 Last revised: 28 Nov 2022

See all articles by Gaétan de Rassenfosse

Gaétan de Rassenfosse

École Polytechnique Fédérale de Lausanne

Marco Grazzi

Universita' Cattolica del Sacro Cuore

Daniele Moschella

Scuola Superiore Sant'Anna di Pisa

Gabriele Pellegrino

École Polytechnique Fédérale de Lausanne

Date Written: January 1, 2022

Abstract

We report a hitherto undocumented causal mechanism of how patent protection affects exports. The empirical analysis leverages unique data on the worldwide patenting and exporting activities at the product level for the universe of French firms. Exploiting the heterogeneity of patent coverage within firm-product-country destinations, we find evidence of a patent premium. Goods protected by patents in a destination country are associated with higher export quantities, ceteris paribus. The effect ranges between four and eleven percent. The causality of the finding is confirmed using rejected patent applications, which are exogenous to the firm. Exports collapse when firms lose patent protection.

Keywords: export, intellectual property right, international trade, patent, product

JEL Classification: D22, F10, F14, O30, O34

Suggested Citation

de Rassenfosse, Gaétan and Grazzi, Marco and Moschella, Daniele and Pellegrino, Gabriele, International Patent Protection and Trade: Transaction-Level Evidence (January 1, 2022). Available at SSRN: https://ssrn.com/abstract=3562618 or http://dx.doi.org/10.2139/ssrn.3562618

Gaétan De Rassenfosse (Contact Author)

École Polytechnique Fédérale de Lausanne ( email )

Station 5
Odyssea 1.04
1015 Lausanne, CH-1015
Switzerland

Marco Grazzi

Universita' Cattolica del Sacro Cuore ( email )

1 Largo A. Gemelli
Milano (Milan), MI Milano 20123
Italy

Daniele Moschella

Scuola Superiore Sant'Anna di Pisa ( email )

Biblioteca Scuola Superiore Sant'Anna
Piazza Martiri della Liberta, n. 33
Pisa, 56127
Italy

Gabriele Pellegrino

École Polytechnique Fédérale de Lausanne ( email )

Station 5
Odyssea 1.04
1015 Lausanne, CH-1015
Switzerland

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