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The Effect of Patent Grant on the Geographic Reach of Patent Sales

Kyriakos Drivas, Irene Fafaliou (), Elpiniki Fampiou and Demetrius Yannelis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines whether patents increase the geographic reach of the market for ideas. By employing a dataset of 25,127 US patents traded between US located firms, we find that patents sold during application phase are less likely to be traded outside the seller‟s state than patents that have been issued. To tackle the endogeneity issues we employ coarsened exact matching techniques. We find that patent grant increases the likelihood of a patent to be traded across boundaries of the state. This evidence is stronger for patents originating from the less innovative US states.

Keywords: patent grant; patent applications; market for patents; geographic reach of technology; coarsened exact matching (search for similar items in EconPapers)
JEL-codes: O32 O33 (search for similar items in EconPapers)
Date: 2014-11-21
New Economics Papers: this item is included in nep-ino, nep-ipr, nep-pr~ and nep-tid
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