Cross-border Patenting and the Margins of International Trade

Inmaculada Martínez-Zarzoso and Ana Maria Santacreu

No 2024-028, Working Papers from Federal Reserve Bank of St. Louis

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 (search for similar items in EconPapers)
JEL-codes: F63 O14 O33 O34 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2024-09-26
New Economics Papers: this item is included in nep-int, nep-ipr and nep-tid
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DOI: 10.20955/wp.2024.028

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