Working Paper
Cross-border Patenting and the Margins of International Trade
Abstract: This paper investigates the impact of cross-border patenting on the margins of international trade using disaggregated data on international patenting and trade flows. We develop a theoretical framework of trade and firms' patenting decisions that motivates our empirical analysis. The main results reveal that cross-border patenting has a larger effect on the extensive margin of trade compared to the intensive margin. This finding suggests that firms tend to seek patent protection in international markets prior to entering those markets with new products, rather than with their existing products.
Keywords: cross-border patents; gravity model; margins of trade; trade agreements;
JEL Classification: F63; O14; O33; O34;
https://doi.org/10.20955/wp.2024.028
Access Documents
File(s):
File format is application/pdf
https://s3.amazonaws.com/real.stlouisfed.org/wp/2024/2024-028.pdf
Description: Full text
Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Working Papers
Publication Date: 2024-09-26
Number: 2024-028