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How do Intellectual property law regimes within the EU affect innovation activity?

Conference contribution
Authors Claes Martinson
Taylan Mavruk
Stefan Sjögren
Published in Europeisk integration i svensk ekonomisk forskning. 21-24 maj 2013, Mölle
Publication year 2013
Published at Department of Law
Department of Business Administration, Industrial and Financial Management & Logistics
Centre for Finance
Language en
Keywords Patent rights, innovation activity, abroad patent applications, EU.
Subject categories Business Administration

Abstract

This paper examines the relationship between patent law regimes and innovation activity. We use an index of patent strength developed by Ginarte & Park (1997) and regress this against two proxies for innovation activity: patent applications and patent grants. We control for legal origin, and conduct partial analyses for EU and non-EU countries. We find that the patent strength has an inversed U-shaped relation with innovation activity. We observe that this inversed U-shaped relation is stronger for abroad patent applications than domestic innovation activity. We observe the opposite effect within the EU countries sample. The relation between the patent strength and the innovation activity is U-shaped. We observe also that this relation is driven by the abroad patent applications. Our conclusions are that patent regimes seem to be more effectual on attracting abroad innovations and that integration, common agreement and strong patent law within the EU countries induce innovators to apply for abroad patents. We obtain similar results in our robustness analyses when we use patent grants as proxy for the innovation activity and re-run our regressions.

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