International Patent Protection and Trade: Transaction-Level Evidence
27 Pages Posted: 14 Apr 2020 Last revised: 15 Jul 2021
Date Written: March 27, 2020
This paper investigates the extent to which international trade hinges on patents. We analyze the export and patenting activities of the universe of French exporting firms over the period 2002-2011. The noticeable feature of our study is that we observe export and patenting activities worldwide and at the product level. We exploit how heterogeneity of patent coverage within firm-product-country destinations relates to exports. We find a patent premium of about six percent, which is mainly associated with a quantity effect. Using information on rejected patent applications, we document a strong causal effect of patent protection on trade.
Keywords: export, intellectual property right, international trade, patent, product
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