2020/07 LEM Working Paper Series

International Patent Protection and Trade: Transaction-Level Evidence

Gaetan de Rassenfosse, Marco Grazzi, Daniele Moschella and Gabriele Pellegrino
  Keywords
 
Export; Patents; Products; Intellectual property rights; Innovation.


  JEL Classifications
 
D22, F10, F14, O30, O34
  Abstract
 
This paper investigates the extent to which international trade hinges onpatents. 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 coverageacross (and within) product-country relates to exports. We find a patent premium of at least 10 percent, which is mainly associated with a quantity effect. A modest price effect emerges in specific sectors, notably pharmaceuticals.
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