Who benefits from strong patent protection? An oil‐dependent country's perspective

Abstract In this paper, a complex interplay is demonstrated, indicating that the impact of intellectual property rights (IPR) and patent protection varies in certain trade contexts. We review the IPR and patent laws in Oman and subsequent amendments following the signing of free trade agreements and investigate how strong protection of patents and IPRs affects Oman's trade. A panel data set comprising the majority of Oman's trading partners from 2000 to 2021 was utilized to achieve this objective. Under the Oman Intellectual Property (IP) Laws, 5617 patent applications were used to calculate the patent index scores. This study contributes four significant findings. First, it analyzes how strong IP and patent protection affect Oman's exports and imports. Second, it assesses the variation in overall trade flows and manufacturing trade flows. Third, while most studies use the IPR index, this study offers a more specific perspective by examining the patent index, particularly concerning manufacturing trade, which is primarily associated with patent‐protected technologies. Fourth, this study provides the first comprehensive analysis of a GCC country that is heavily dependent on oil. This study reveals that Oman's strong IPR and patent regimes significantly enhance overall exports. Strong patent protection promotes the import of high‐tech goods, whereas robust IPR protection unexpectedly reduces manufacturing trade.